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The Digital Asset Market Clarity Act of 2025 (CLARITY Act) is a proposed U.S. federal bill aimed at creating a comprehensive regulatory framework for digital assets, but it has stalled in the Senate as of January 2026. The bill intends to provide clear jurisdictional boundaries between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Key Provisions
The CLARITY Act proposes a functional approach to classify digital assets into three categories and assign regulatory oversight accordingly:
Digital Commodities: These are digital assets whose value is intrinsically linked to the functionality of a blockchain system (e.g., Bitcoin). The bill would grant the CFTC exclusive jurisdiction over spot market transactions of digital commodities.Investment Contract Assets: These are digital commodities sold for capital-raising purposes (e.g., in an initial coin offering). They would be treated as securities under the SEC's jurisdiction, but this designation would be temporary, converting to a digital commodity once resold on the secondary market by a non-issuer.Permitted Payment Stablecoins: These are stablecoins backed by a national currency and issued by regulated entities. Issuers would be subject to banking regulators, but both the SEC and CFTC would maintain anti-fraud and anti-manipulation authority.
Current Status
The bill, H.R. 3633, passed the House of Representatives in July 2025. However, its progress in the Senate has been delayed due to disagreements over specific provisions, including language that would restrict or ban rewards (yield) on stablecoins and create high barriers for tokenized real-world assets (RWAs). Major industry players, such as Coinbase CEO Brian Armstrong, have voiced strong opposition to the bill in its current form, contributing to the Senate Banking Committee's decision to postpone a critical vote in January 2026.
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