CLARITY Act Passes House – Digital Asset Regulatory Framework

The Digital Asset Market Clarity (CLARITY) Act of 2025 has passed the House with a 294-134 vote. The bill aims to create a clear regulatory framework by dividing oversight between the CFTC for digital commodities and the SEC for securities.

Representative French Hill and a bipartisan coalition led the charge. “I frame CLARITY as a way to provide regulatory certainty and keep innovation in the U.S.,” said Rep. French Hill (R-AR), Chair, House Financial Services Subcommittee on Digital Assets (source). The decision now awaits Senate approval, where Banking Committee leaders have signaled support for advancing a market-structure package. This development introduces more defined jurisdiction in digital asset regulation and aligns with ongoing legislative developments in US crypto policy.

The CLARITY Act reshapes how digital asset markets are governed. It offers regulatory certainty for institutional investors and potentially allows US banks to engage more actively in spot markets, facilitating liquidity. Stablecoins face new compliance requirements concurrently.

This legislative effort could enhance investor confidence by reducing regulatory uncertainties. The Act also addresses interest-equivalent incentives, affecting stablecoin competition with traditional financial entities. Changes indicate possible shifts in how digital assets are viewed and treated legally, reflecting key insights on crypto market structure legislation.

If enacted as written, the CLARITY Act might classify Bitcoin under CFTC spot jurisdiction. This could position it favorably compared to tokens labeled as securities, which would see stricter SEC scrutiny. Analysts predict potential changes in market structure and asset designation. For the full legislative text, see House Bill 3633.

Financial, regulatory, and technological outcomes hinge on the Act’s interpretations, offering opportunities for compliant expansions in institutional crypto involvement. Historical trends suggest similar successful frameworks have driven significant market maturation and adoption.