- Main event, leadership changes, market impact. The CLARITY Act passed the House, altering U.S. crypto regulations.
- New U.S. crypto oversight expands institutional participation by clarifying rules.
- Banks and asset managers gain clarity under new regulatory framework.
The Digital Asset Market Clarity Act of 2025, introduced by Chairman French Hill, passed the U.S. House on July 17, significantly altering crypto regulation governance between the CFTC and SEC.
The Act enhances regulatory clarity, promoting institutional confidence and likely increasing market participation, impacting digital commodities like Bitcoin and Ethereum.
The Digital Asset Market Clarity Act of 2025 passed the House on July 17, marking a transformative step in U.S. crypto regulation by delineating roles for the CFTC and SEC. This aims to boost market confidence and reduce legal uncertainties. House Bill 3633 Text on Digital Assets
Key figures involved include Chairman French Hill, who introduced the Act, and regulators like the Commodity Futures Trading Commission and Securities and Exchange Commission. The Act reassigns oversight, providing clearer guidelines for digital assets.
The Act’s passage affects financial industries, particularly banks, allowing them to become registered brokers or dealers and offer crypto-related services. This change is anticipated to enhance market dynamics and expand institutional engagement. Bipartisan Discussion Draft on Market Structure
Bitcoin and Ethereum are now designated as digital commodities under CFTC oversight. This brings greater transparency and is expected to drive institutional flows and liquidity in the U.S. compliant crypto ecosystem. Statement by Allen on Digital Assets
“This Act establishes clear, functional requirements for digital asset market participants, prioritizing consumer protection while fostering innovation.” — French Hill, Chairman, House Financial Services Committee
Besides enhancing institutional participation, the Act imposes stringent compliance requirements for crypto exchanges and DeFi entities. These include AML/KYC protocols under the Bank Secrecy Act. Senate Banking Committee Digital Asset Legislation Draft
The Act draws on historical regulatory approaches, seeking to end “regulation by enforcement” practices. Alignment between regulatory bodies is expected to form new precedents for stablecoin and DeFi oversight in the U.S.
