What is the Digital Asset Market Clarity Act of 2025?

The Clarity Act, officially H.R.3633 – Digital Asset Market Clarity Act of 2025, is a comprehensive crypto market structure law passed by the U.S. House of Representatives in July 2025. Its main purpose is to eliminate the long-standing uncertainty regarding how digital assets (especially cryptocurrencies) should be classified and which institution (SEC or CFTC) has jurisdiction in which area, and to position the U.S. as a global leader in crypto innovation. Main Purpose and Structure
The law aims to resolve the jurisdictional confusion between the SEC (Securities and Exchange Commission) and the CFTC (Commodity Futures Commission) by clearly classifying digital assets:
Digital Commodity: Decentralized digital assets whose value is derived from the use and operation of a blockchain network (e.g., network tokens on mature networks, Bitcoin-like assets, memecoins, and some other assets).
Assets containing Investment Contracts: Remain under SEC jurisdiction in the primary market (initial sale). Permitted Payment Stablecoins and other financial instruments (securities, derivatives, etc.) are excluded from this definition.
Key Elements
SEC – CFTC Jurisdiction Separation
Spot (cash) markets of digital commodities linked to mature (decentralized) blockchains → fall under the exclusive jurisdiction of the CFTC.
If there is an investment contract in the primary market (project token sale) → SEC regulation applies, but a new registration exemption is provided.
In secondary markets (secondary trading), the token is no longer considered an investment contract → SEC jurisdiction is largely removed.
Definition of Mature Blockchain
Criteria such as not being controlled by any single person or group,
Value largely derived from network usage,
No single holder holding more than 20% of the tokens are sought. Additional clarifications and restrictions are introduced for immature blockchains.
New Intermediary Types and Registration
New CFTC-registered intermediary institutions such as Digital Commodity Exchange (DCE), Digital Commodity Dealer (DCD), and Digital Commodity Broker (DCB) are defined.
Some SEC-registered intermediaries (broker-dealers, ATS) are allowed to dual-register with the CFTC.
Requirements such as customer asset separation, conflict prevention, and record keeping are introduced.
Token Sale and Capital Raising
A limited SEC registration exemption of up to $75 million is granted for digital commodity projects.
A disclosure regime is introduced.
Resale restrictions are applied to project insiders.
Other Important Provisions
CBDC (Central Bank Digital Currency) restrictions: The Fed is prohibited from providing direct services to individuals, and the use of CBDC as a monetary policy tool is prevented. DeFi and software developers: Protection is provided to developers who do not hold customer funds. Stablecoin yield/interest issue: Although not directly prohibited in the law, it remains one of the biggest points of disagreement between the banking lobby and the crypto sector.
Anti-fraud and manipulation powers are strengthened.
Current Situation (February 2026)
House (House of Representatives) passed (July 2025).
There are two different drafts on the Senate side:
Senate Agriculture Committee (CFTC-focused, “Digital Commodity Intermediaries Act”): Updated and passed the committee in January 2026.
Senate Banking Committee (broader, SEC + banking-focused): Markup delayed, currently being discussed behind closed doors by Democrats.
Not yet passed the Senate General Assembly → House and Senate versions will be reconciled (conference committee) → will go to the President's desk.
The stablecoin interest/yield issue and some DeFi regulations are still the biggest points of disagreement. While the Clarity Act has the potential to bring long-awaited regulatory clarity to the crypto sector, it is expected to be finalized in the first half of 2026 due to the Senate's consensus process and stablecoin debates.