U.S. Lawmakers Unveil CLARITY Act Regulating Digital Assets

A bipartisan group of House members has introduced a draft bill regulating the broad cryptocurrency market.

As expected, the CLARITY Act of 2025 grants the Commodity Futures Trading Commission (CFTC) broad authority over most crypto assets, significantly reducing the Securities and Exchange Commission’s (SEC) role in overseeing digital assets.

The bill originated from the House Committee on Agriculture, which oversees the CFTC, underscoring the authority the agency will have.

“Market participants will have a trusted pathway to trade digital commodities through intermediaries and exchanges overseen by the CFTC,” a summary of the bill reads. There will be “comprehensive registration regimes to permit digital asset firms to lawfully serve customers in digital asset markets.”

That said, the SEC will have a role, overseeing digital asset developers as they raise funds, among other things. The bill seeks to “establish clear lines” of authority between the two agencies.

Cryptocurrency developers “will be required to disclose a substantial amount of information about a project’s operations, ownership and structure.” Customer-facing firms, such as brokers and dealers, will be required to segregate customer funds from their own, clearly disclose any conflicts of interest, and provide customers with appropriate details about a project.

Bipartisan Support

Unlike the Senate’s far simpler stablecoin regulation bill, the GENIUS Act, the House bill won’t get hung up on partisan politics, as Republicans can pass it with a simple majority. That said, the goal is to pass the bill by a wide margin.

Three of the seven members who announced the bill on May 29 were Democrats, including the ranking minority member of the Agriculture Committee, Rep. Angie Craig of Minnesota. House Agriculture Committee Chairman Glenn Thompson (R-Pa.) and Financial Services Committee Chairman French Hill (R-Ark.) introduced the bill.

“The golden age of digital assets is here,” said Rep. Bryan Steil, chairman of the Financial Services Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence, in a statement.

“America won’t just participate in the Web3 revolution; we will win it. The CLARITY Act ensures that financial innovation and development of digital assets occurs here in the United States. Our bill secures American dominance, democratizes digital assets, unleashes innovation, and protects consumers from fraud,” Steil added.

Rep. Ritchie Torres (D-N.Y.) said that “for too long, regulatory uncertainty has held back the full potential of digital innovation in the United States. The CLARITY Act will deliver clear rules of the road that entrepreneurs, investors, and consumers deserve.”

White House Crypto Czar David Sacks has said he expects both the stablecoin bill and the broader market regulation bill to pass by August.