🇺🇸 United States · Key Regulation
CLARITY Act
The Digital Asset Market Clarity Act of 2025, H.R. 3633, is a U.S. federal legislative proposal intended to create a comprehensive market-structure framework for digital assets.
In this briefing
- What it is
- What does the CLARITY Act do?
- Key things to know
The proposal addresses how digital assets and market participants should be regulated under federal securities and commodities laws. It seeks to clarify the respective roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission, while establishing requirements for intermediaries operating digital-asset trading and brokerage businesses.
The House of Representatives passed the CLARITY Act on 17 July 2025 by a vote of 294–134. It remains proposed legislation rather than an enacted federal regime, so its final content and implementation timetable depend on further congressional action.
What does the CLARITY Act do?
Allocates SEC and CFTC Jurisdiction
Creates a framework for determining when a digital asset falls under securities regulation and when activity involving a digital commodity falls primarily under CFTC oversight.
Establishes Digital-Asset Market Categories
Introduces statutory definitions and classification concepts intended to clarify the treatment of digital assets, digital commodities, issuers and market participants.
Regulates Digital-Asset Intermediaries
Creates registration and regulatory requirements for relevant exchanges, brokers, dealers and other intermediaries operating in digital-asset markets.
Introduces Disclosure Requirements
Requires specified information about digital-asset projects, networks, governance and related risks to be disclosed to market participants.
Provides Pathways for Certain Network-Related Transactions
Creates procedures and conditions addressing digital assets connected to blockchain networks, including how the regulatory treatment may change as a network develops or reaches specified characteristics.
Introduces Consumer and Market Safeguards
Includes requirements intended to address customer asset protection, conflicts of interest, market integrity, illicit finance and regulatory coordination. The House committee summary also identifies multiple SEC and CFTC rulemakings needed to implement the framework.
Key things to know
The CLARITY Act is not yet law
House passage was a major legislative milestone, but the proposal must still complete the remaining legislative process before it becomes binding. Firms should treat it as an important direction of travel rather than a current licensing framework.
Classification remains central
The regulatory outcome depends on how an asset, transaction and network fit within the statutory definitions. Classification will affect the regulator, registration route, disclosure duties and obligations of intermediaries.
The framework is broader than token issuance
The proposal addresses the wider market structure, including exchanges, brokers, dealers, custody, customer asset protection and the roles of the SEC and CFTC.
Decentralisation questions will remain important
The degree of network development, governance and control may affect the regulatory treatment of an asset. Firms will need evidence supporting claims about network status rather than relying on decentralisation as a marketing label.
Enactment would be followed by substantial rulemaking
The legislation directs the SEC and CFTC to develop implementing rules. Even if enacted, the practical framework would continue to evolve through regulations, interpretations and agency coordination.
Other U.S. regimes would still apply
A federal market-structure law would not remove obligations relating to AML, sanctions, money transmission, state law, tax, consumer protection or the separate federal stablecoin framework. Firms would still need to assess the full regulatory stack for their activities.
For general information only. Not legal, regulatory or compliance advice.
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