Digital Asset Market Clarity Act of 2025
Sponsor
J. Hill
Republican · AR-2
Latest Action · Sep 18, 2025
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Bill Progress
New crypto bill splits watchdogs, shields noncustodial wallets
Why it matters
The proposal would decide whether open-source wallet software and core crypto infrastructure get treated like regulated Wall Street intermediaries — a choice that could shape where innovation happens, which firms survive, and how easily everyday users can hold their own digital assets.
HR 3633, branded the Digital Asset Market Clarity Act of 2025, drops into Congress just as lawmakers are moving to wall off noncustodial wallets and open-source tooling from being treated like banks or brokers — forcing a collision between old-school compliance rules and infrastructure that never actually holds customer funds. The bill sketches a joint SEC–CFTC regime for "digital commodities" and creates provisional registration paths for exchanges, brokers and dealers, but it lands in a landscape where House and Senate efforts are already converging on explicit carve-outs for wallets, node operators and protocol developers.
That timing matters. The House’s earlier CLARITY push and a bipartisan Senate market-structure draft have both leaned toward protecting noncustodial tools from being swept in as intermediaries, even as they beef up oversight of centralized trading venues and issuers. As lawmakers refine definitions and jurisdiction in HR 3633’s Title I, they’ll have to decide whether to treat surveillance and KYC as something that lives at the exchange and stablecoin layer — or try to extend it into an ecosystem that deliberately routes activity through noncustodial software that never takes possession of assets.
The big picture: Congress is inching toward a split jurisdiction map: SEC on digital-asset securities, CFTC on digital commodities, with joint standards over trading venues and disclosures — a framework that shows up both in HR 3633’s shared SEC–CFTC mandate and in a bipartisan Senate committee draft that lays out a market-structure regime for token spot markets. At the same time, a separate CLARITY track has pushed to codify that noncustodial wallets, validators and protocol developers aren’t “brokers” or “exchanges,” an approach legal analysts say is now coming into focus as a durable legislative template.
Visual Summary
HR3633 at a Glance
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<img src="https://legisletter.org/images/bill-infographics/hr3633-clarity-act-infographic.jpeg" alt="HR3633 Visual Summary - Digital Asset Market Clarity Act of 2025" style="max-width:100%;height:auto;display:block;" />
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</div>What This Bill Does
Creates a national rulebook for digital assets
The bill sets up a formal system for how digital assets (like crypto-style products) are offered and sold in the United States. Instead of a legal gray area, there would be clear rules written into law.
Splits crypto oversight between two agencies
The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are both given roles in watching over digital assets. The bill lays out sections that change old securities and commodities laws so each agency knows what it’s in charge of.
Creates special rules for how new and existing tokens are sold
The bill sets rules for first-time sales of digital assets (when something new is launched) and for later trades between people once those assets are already out in the world. It also has separate rules for when a digital asset started life as an investment contract, and how it’s treated after that.
Builds a licensing system for crypto-style middlemen
The bill creates registration systems for exchanges, brokers, dealers, and other businesses that sit in the middle of digital asset trades. These companies would have to register with either the SEC, the CFTC, or both, and follow rules on things like recordkeeping, custody, and how they run their trading platforms.
Gives some digital assets and activities special treatment
The bill calls out certain things for special handling, like payment-focused stablecoins and activities that look more like decentralized finance. It also sets up ideas like a ‘mature blockchain system’ and decides how those should be treated under the law.
Connects digital asset rules to anti-money-laundering laws
The bill explicitly ties digital asset activity into the Bank Secrecy Act, which is the main anti-money-laundering law. That means the usual tracking and reporting rules for suspicious money flows are meant to apply to these new types of assets too.
Who Benefits
Crypto trading platforms and exchanges
They get a clearer path to register and operate under federal rules, instead of guessing which old laws apply. This can make it easier to plan their business and attract users who want more legal certainty.
Brokerage firms and dealers that want to handle digital assets
These firms gain a defined way to register and legally offer digital asset services alongside traditional stocks or commodities. It helps them expand into crypto-style products without wondering which regulator might crack down later.
Banks and other institutions that want to hold digital assets for customers
The bill talks about custody and treats some digital asset activities as ‘financial in nature,’ giving these institutions a clearer lane to store and safeguard digital assets. That can open up new services, like holding customers’ tokens the same way they hold cash or securities.
Regular people who buy or trade digital assets
They benefit from more structured oversight, which is meant to reduce scams and confusion. Clearer rules about who is allowed to run an exchange or sell a token can make it easier to know which platforms are playing by the rules.
Who's Affected
Companies that issue or launch new digital tokens
They would need to follow new rules for how they offer and sell their tokens, especially if those tokens start out as investment contracts. In practice, that means more formal processes and compliance steps before selling tokens to the public.
Crypto exchanges, brokers, and dealers already operating in the U.S.
Many of them would need to seek new registrations with the SEC, the CFTC, or both, and follow the new standards laid out in the bill. Day-to-day, they’d have to adjust their operations, recordkeeping, and custody arrangements to fit the new framework.
State securities regulators
The bill includes a section that exempts digital commodities from state securities laws, which would limit how much states can apply their own rules to many digital assets. State regulators would likely have a smaller direct role over these products than they do over traditional securities.
Users of decentralized finance tools
The bill specifically mentions an exclusion for some decentralized finance activities, which means certain people using crypto tools that don’t hold their money for them might be treated differently from users of centralized platforms. Still, they could feel indirect effects as some activities get clearly regulated and others clearly carved out.
Cosponsors (21)
Glenn Thompson
Republican · PA
Angie Craig
Democrat · MN
Tom Emmer
Republican · MN
Dusty Johnson
Republican · SD
Donald Davis
Democrat · NC
Bryan Steil
Republican · WI
Ritchie Torres
Democrat · NY
Warren Davidson
Republican · OH
Josh Gottheimer
Democrat · NJ
Bill Huizenga
Republican · MI
Zachary Nunn
Republican · IA
Michael Lawler
Republican · NY
Recent Actions
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Motion to reconsider laid on the table Agreed to without objection.
On passage Passed by the Yeas and Nays: 294 - 134 (Roll no. 199). (text of amendment in the nature of a substitute: CR H3373-3397)
Passed/agreed to in House: On passage Passed by the Yeas and Nays: 294 - 134 (Roll no. 199).
Considered as unfinished business. (consideration: CR H3449: 1)
POSTPONED PROCEEDINGS - At the conclusion of debate on H.R. 3633, the Chair put the question on passage of the bill and by voice vote, announced that the ayes had prevailed. Ms. Craig demanded the yeas and nays and the Chair postponed further proceedings until a time to be announced.
The previous question was ordered pursuant to the rule.
DEBATE - The House proceeded with one hour of debate on H.R. 3633.
What Changes in the Law
8 key amendments · 8 total changes
Securities Act of 1933 – new digital asset–related definitions (Section 2(a))
New defined terms related to digital assets are added to Section 2(a) of the Securities Act of 1933, including but not limited to terms such as "digital asset", "digital commodity", "investment contract asset", "digital commodity intermediary", and related concepts needed to distinguish when a digital asset is treated as a security versus a commodity.What this means: This adds core definitions to the 1933 Act so that federal securities law can differentiate between traditional securities and various kinds of digital assets and intermediaries.
Securities Exchange Act of 1934 – new digital asset–related definitions (Section 3(a))
New defined terms are added to Section 3(a) of the Securities Exchange Act of 1934 to cover "digital commodity", "digital commodity exchange", "digital commodity broker", "digital commodity dealer", and to clarify how digital assets fit within or outside existing concepts such as "security" and "exchange".What this means: This amends the 1934 Act so that the SEC can clearly classify and regulate market participants that trade or handle digital commodities rather than treating all digital assets as conventional securities.
Commodity Exchange Act – new digital asset–related definitions (7 U.S.C. 1a and related sections)
The Commodity Exchange Act is amended to insert explicit definitions for "digital commodity", "digital commodity exchange", "digital commodity broker", "digital commodity dealer", "qualified digital asset custodian", and related terms, and to clarify the scope of the Commodity Futures Trading Commission’s jurisdiction over spot and other transactions in digital commodities.What this means: This change formally brings certain digital assets and the platforms that trade them under the Commodity Exchange Act so the CFTC can regulate them as a new class of commodities.
Federal securities laws – treatment of investment contract assets (new provisions under Title II, Section 201)
A new statutory framework is added specifying that an "investment contract asset" initially sold as part of an investment contract can, once certain criteria are met (such as network decentralization or functionality criteria specified in the Act), be treated as a "digital commodity" rather than an ongoing security.What this means: This creates a path for some tokens that start out as securities offerings to later be treated as non‑securities commodities once the underlying blockchain project is sufficiently mature.
Federal securities laws – exemptions for primary digital commodity offerings (Title II, Section 202)
A new exemption is created for certain primary offers and sales of digital commodities that satisfy disclosure, size, purchaser protection, and other conditions set out in the Act, allowing these offerings to occur without full registration under the Securities Act of 1933.What this means: This establishes a tailored exemption so qualifying token issuances can raise capital with lighter but prescribed disclosure instead of full SEC registration.
Federal securities laws and Commodity Exchange Act – regulatory treatment of digital commodity intermediaries (Title III & Title IV)
New registration categories and ongoing requirements are added for digital commodity exchanges, brokers, dealers, and associated persons at both the Securities and Exchange Commission and the Commodity Futures Trading Commission, including recordkeeping, customer protection, and prudential standards tailored to digital assets.What this means: This creates a formal dual‑regulator regime under which platforms and intermediaries that handle digital commodities must register and comply with digital‑asset‑specific rules at the SEC and/or CFTC.
Commodity Exchange Act – new CFTC jurisdiction over digital commodity spot markets (Title IV, Section 401)
The Commodity Exchange Act is amended to grant the Commodity Futures Trading Commission explicit authority over certain spot and other transactions in digital commodities, including oversight of registered digital commodity exchanges and brokers operating in those markets.What this means: This gives the CFTC clear statutory power to police trading platforms and brokers dealing in digital commodities, not just derivatives tied to them.
Federal law preempting State securities treatment of digital commodities (Title III, Section 308)
A new provision is added stating that digital commodities, as defined and regulated under this Act and the amended federal securities and commodities laws, are exempt from treatment as "securities" under State blue sky laws to the extent specified in the Act.What this means: This preempts conflicting state securities regimes for covered digital commodities, replacing them with a unified federal classification and oversight framework.
Committees (3)
Banking, Housing, and Urban Affairs Committee
Senate · Standing
Referred To · Sep 18, 2025
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Get a DemoWho's Lobbying
68 organizations lobbying on this bill
| Organization | Period |
|---|---|
COMMUNITY BANKERS ASSOCIATION OF ILLINOIS | Q2 |
DIGITAL CURRENCY GROUP | Q2 |
FILECOIN FOUNDATION | Q2 |
CONNECT STRATEGY LLC (ON BEHALF OF CRYPTEX FINANCE) via COGENT STRATEGIES LLC | Q2 |
ANCHOR LABS, INC. | Q2 |
CME GROUP INC via CME GROUP, INC. | Q2 |
TETHER OPERATIONS, S.A. DE C.V. via JUCUNDUS BUSINESS SERVICES LLC | Q2 |
GOWEST CREDIT UNION ASSOCIATION | Q2 |
FILECOIN FOUNDATION via GOLDSTEIN POLICY SOLUTIONS LLC | Q2 |
NATIONAL VENTURE CAPITAL ASSOCIATION | Q2 |
CRYPTO COUNCIL FOR INNOVATION via PHRONESISDC, LLC | Q2 |
LMAX GROUP via PHRONESISDC, LLC | Q2 |
PARADIGM OPERATIONS LP via PHRONESISDC, LLC | Q2 |
AMERICANS FOR FINANCIAL REFORM | Q2 |
THE INSTITUTE OF INTERNAL AUDITORS | Q2 |
Showing 1-15 of 68 organizations
Full Bill Text
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