The U.S. House of Representatives on July 17, 2025, passed the Digital Asset Market Clarity Act of 2025 (CLARITY Act, H.R. 3633) with a resounding bipartisan vote of 294 in favor and 134 against. Sponsored by Representative French Hill, the legislation seeks to create a comprehensive federal regulatory framework for digital assets, which proponents say will make the United States the "crypto capital of the world."
Core Provisions: SEC vs. CFTC Jurisdiction
The CLARITY Act resolves the long-standing jurisdictional tug-of-war by clearly dividing oversight: the Commodity Futures Trading Commission (CFTC) will regulate digital commodities such as Bitcoin that operate on mature blockchains, while the Securities and Exchange Commission (SEC) retains authority over tokens that function as investment contracts. The bill also provides legal definitions for key terms like “digital commodity,” “blockchain,” and “decentralized asset,” exempts certain truly decentralized assets from SEC registration, and sets rules for trading platforms, brokers, and stablecoin issuers.
Opposition and Criticism
Despite broad support, the bill drew sharp criticism from leading Democrats, including Representative Maxine Waters, who argued that the CLARITY Act weakens consumer protection measures and could create conflicts of interest — particularly given President Trump’s involvement in crypto ventures. Opponents contend the legislation gives the CFTC too much authority without adequate expertise or funding.
Next Steps and Market Impact
The CLARITY Act now moves to the Senate for consideration. If enacted, it would provide the first federal law in the U.S. that comprehensively categorizes digital assets, offering clear compliance pathways for exchanges, DeFi projects, and stablecoin operators. The crypto industry has widely applauded the House vote as a milestone that could reduce regulatory uncertainty and unlock institutional investment.