The US Senate Banking Committee on Thursday advanced the Digital Asset Market Clarity Act (CLARITY ACT) of 2025. This major crypto market-structure bill would establish regulatory rules for digital assets in the country. The legislation passed the committee in a 15-9 bipartisan vote after nearly a year of negotiations and will now move to the full Senate for consideration.
Defines “digital commodities”: The bill defines a digital commodity as a digital asset “intrinsically linked” to a blockchain system whose value derives from its use. It excludes traditional securities, swaps, derivatives, some stablecoins, pooled investment vehicles, and digital collectibles from that category.
Other important definitions
- Blockchain application: “any executable software that is deployed to a blockchain and composed of source code that is publicly available, including a smart contract or any network of smart contracts, or other similar technology.”
- Blockchain protocol: “publicly available source code of a blockchain that is executed by the network participants of a blockchain to facilitate its functioning, or other similar technology.”
- Decentralized governance system: “any transparent, rules-based system permitting persons to form consensus or reach agreement in the development, provision, publication, maintenance, or administration” of a blockchain system, where participation is not limited to or controlled by a person or coordinated group.
- Digital asset: “any digital representation of value which is recorded on a cryptographically-secured distributed ledger or other similar technology.”
- Digital commodity exchange: “a trading facility that offers or seeks to offer a cash or spot market in at least 1 digital commodity.”
- Mixed digital asset transaction: “a transaction in which a digital commodity is traded for a security.”
- Mature blockchain system: “a blockchain system, together with its related digital commodity, that is not controlled by any person or group of persons under common control.”
- End user distribution: “a distribution of a unit of a digital commodity” that includes rewards for users, staking, mining, validating, and other blockchain participation activities.
Splits oversight: The Commodity Futures Trading Commission (CFTC) has primary oversight over spot markets for digital commodities, while the Securities and Exchange Commission (SEC) retains authority over crypto assets that qualify as securities. The two agencies must jointly issue rules for defining key terms, determining how to handle mixed digital asset transactions, and establishing processes for delisting assets that violate securities or commodities laws.
Creates a registration regime: Crypto exchanges, brokers, and dealers handling digital commodities must register with the CFTC. The bill requires the regulator to create an expedited registration process within 180 days of enactment. Firms would remain under provisional status until the final rule-making takes effect. Until registration is complete, firms must prominently disclose in offering documents and promotional material that the CFTC does not regulate them.
Protects self-custody: The Act states that US individuals retain the right to use hardware and software wallets to lawfully hold their own crypto assets and conduct direct peer-to-peer transactions. It also states that publishing blockchain software, providing infrastructure support, or building tools that help users custody their own assets alone cannot make non-controlling blockchain developers money transmitters.
Brings crypto firms under anti-money laundering rules: The legislation applies Bank Secrecy Act obligations to digital commodity brokers, dealers, and exchanges. It preserves the powers of the Treasury Department, SEC, CFTC, Federal Reserve, FDIC, and other agencies to enforce anti-money laundering, sanctions, terrorism financing, and illicit finance laws against crypto entities where applicable.
Creates exemptions for decentralized finance systems: The bill defines a “decentralized finance trading protocol” as a blockchain system that executes transactions automatically through pre-programmed rules without another person controlling the user’s assets during the transaction. Systems where a person or coordinated group can materially alter the blockchain’s operations, functionality, or consensus rules would not qualify for this treatment.
Bars the Federal Reserve from issuing CBDCs: The bill incorporates the Anti-CBDC Surveillance State Act, which would prohibit Federal Reserve banks from directly issuing a central bank digital currency (CBDC) to individuals. It would also bar the Federal Reserve from offering financial products or services directly to individuals, maintaining accounts on behalf of individuals, or issuing a CBDC indirectly through financial institutions or other intermediaries, and prohibit the use of a CBDC for implementing monetary policy.
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