Clarity Act Unlocks Regulatory Framework for Digital Assets

The Digital Asset Market Clarity Act of 2025 marked a significant shift in the regulatory landscape for cryptocurrencies. Introduced by Rep. French Hill (R-AR) on May 29, 2025, and passed by the House with a bipartisan vote of 294-134 on July 17, 2025, the legislation created a three-tier taxonomy for digital assets.

The CFTC is now in charge of regulating digital commodities, while the SEC retains authority over investment contract assets. A new category was also established for permitted stablecoins. The bill requires that digital commodity exchanges, brokers, and dealers register with the CFTC and mandates customer protection provisions, including asset segregation.

The Act acknowledges the void in spot market supervision prior to its passage, giving the CFTC explicit jurisdiction over spot digital commodity markets. For the SEC, it preserves its traditional role in overseeing securities offerings while narrowing the scope of what qualifies as a security in the crypto context.