The Digital Asset Market Clarity Act, commonly known as the Clarity Act, passed the U.S. House of Representatives on July 17, 2025, with a 294-134 vote, marking a significant step toward establishing a regulatory framework for the cryptocurrency market.
The bill, which defines when a crypto asset is a security (regulated by the SEC) or a commodity (overseen by the CFTC), aims to resolve long-standing disputes that have hindered industry growth.
Now headed to the Senate, the Clarity Act could redefine the U.S. crypto industry’s regulatory landscape if signed into law by President Donald Trump.
The Clarity Act addresses a critical issue: the classification of digital assets. Under former SEC Chair Gary Gensler, many tokens were deemed securities, subjecting them to stringent securities laws. The bill proposes that most tokens be classified as commodities, reducing regulatory burdens and enabling platforms like Coinbase to offer them more easily.
This shift is a major win for the crypto industry, which spent over $119 million in 2024 to back pro-crypto candidates. The bill also clarifies jurisdictional boundaries between the SEC and CFTC, fostering a more predictable environment for tokenized assets.
During “Crypto Week,” the House also advanced the GENIUS Act and an anti-CBDC bill, reflecting a broader pro-crypto agenda. However, the Clarity Act faced opposition from
Democrats like Maxine Waters, who called it a “giveaway” to Trump’s crypto ventures, including his $TRUMP meme coin and World Liberty Financial. Critics argue the bill lacks robust consumer protections, potentially exposing investors to risks.
Supporters, including French Hill, chair of the House Financial Services Committee, emphasize that clear rules will drive institutional investment and innovation, particularly in DeFi and tokenized markets.
The Clarity Act’s Senate passage remains uncertain due to debates over CBDC provisions and amendments proposed by Democrats. Rep. Marjorie Taylor Greene and the House Freedom Caucus pushed for a CBDC ban, complicating negotiations.
Despite these hurdles, Trump’s intervention, including a Truth Social post urging swift action, secured GOP support. The bill’s potential to legitimize tokenized assets could boost markets like real estate, commodities like gold, financial instruments like bonds and stocks, and even collectibles like artwork or luxury goods.
Our Education section offers resources on how these regulations impact investors and creators.
If passed, the Clarity Act could unlock significant capital, as noted by Jag Kooner of Bitfinex, by reducing regulatory uncertainty.
This aligns with Trump’s executive order to prioritize crypto, reinforcing the U.S. as a blockchain leader. Stay updated via our Market Insights for the latest on the Clarity Act’s progress and its impact on the U.S. crypto industry.
