Key Takeaways
- Under the act, the CFTC would become the lead regulator for most digital assets, with issuers retaining the option to register with the SEC if they plan to target institutional investors directly.
- A new amendment states that certain non-controlling blockchain developers and service providers will not be categorized as money transmitters, sparing them from extensive registration requirements.
In a landmark development for the U.S. crypto industry, the Digital Asset Market Clarity Act—known as the CLARITY Act—has successfully passed through two critical House committees and will now advance to the full House of Representatives for consideration.
The bill, formally designated H.R. 3633, received a 32–19 bipartisan vote in favour during Wednesday’s House Financial Services Committee session. One day earlier, the House Agriculture Committee had also passed the legislation by a decisive 47–6 margin, marking a rare moment of cross-party consensus on crypto regulation in a divided Congress.
Championed by House Financial Services Committee Chairman French Hill (R-AR), the legislation aims to establish a clear federal regulatory framework for cryptocurrencies, separating responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Under the act, the CFTC would become the lead regulator for most digital assets, with issuers retaining the option to register with the SEC if they plan to target institutional investors directly.
“This bill is about establishing a fair, functional, forward-looking regulatory framework that captures everyone participating in it,” said Hill following the committee vote. “Congress has a historic opportunity to provide the clear regulatory framework needed to unlock this innovation.”
In a statement, House Agriculture Committee Chairman GT Thompson (R-PA) added, “Today’s bipartisan votes advancing this bill out of our respective committees proves that the timing is ripe to advance common sense legislation that will finally bring certainty to the digital asset space.”
Notably, the legislation also contains explicit protections for users’ rights to hold digital assets in non-custodial wallets and transact via peer-to-peer platforms. A newly added amendment introduced by Hill further clarifies that certain non-controlling blockchain developers and service providers will not be categorized as money transmitters, sparing them from extensive registration requirements.
Bryan Steil (R-WI), chair of the Financial Services Subcommittee on Digital Assets, played a key role in ushering the bill through both committees. Hill acknowledged Steil’s leadership, stating, “This is the second bill that Bryan Steil has ably led—first stablecoins and now a market structure bill.”
The legislation did face resistance from several Democratic lawmakers during the Financial Services markup session. Concerns were raised about potential regulatory loopholes, fears of enabling DeFi-related abuse, and broader criticism linked to perceived ties between digital asset lobbying and figures like former President Donald Trump. Rep. Sam Liccardo (D-CA) voiced reservations about the bill’s ability to prevent companies from exploiting decentralized classification to evade oversight.
Despite the partisan debate, support from both Republican and select Democratic members has pushed the legislation one step closer to becoming law.
Before it can become law, the consolidated version of the CLARITY Act must pass a full House floor vote and be reconciled with any Senate counterpart before landing on the President’s desk.
The legislative momentum also coincides with the Senate’s upcoming vote on the GENIUS Act, a bill addressing stablecoin regulation in the country
