H.R. 3633

Digital Asset Market Clarity Act

Sponsor: J. French Hill

21 cosponsors
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Official summary

Written by the Congressional Research Service.

Digital Asset Market Clarity Act of 2025 or the CLARITY Act of 2025

This bill establishes a regulatory framework for digital commodities, defined by the bill as digital assets that rely upon a blockchain for their value.

The Commodity Futures Trading Commission must generally regulate digital commodities transactions, including digital commodity exchanges, brokers, and dealers. To qualify for trade on an exchange (1) a digital commodity’s blockchain must be mature, or on a blockchain system that has achieved decentralized control as defined by the bill; or (2) the issuer of the digital commodity must file certain reports. The bill establishes requirements for trade monitoring, recordkeeping, and the commingling of customer assets.  

The bill exempts digital commodities on mature blockchains (and digital commodities on blockchains expected to mature within certain timeframes) from Securities and Exchange Commission (SEC) registration requirements if annual sales fall under a certain amount and other requirements are met. The bill provides the SEC with jurisdiction over digital commodity activities and transactions engaged in by certain brokers and dealers on alternative trading systems and by national securities exchanges. 

Digital commodity exchanges, brokers, and dealers are subject to the Bank Secrecy Act for anti-money laundering and related purposes.

The bill also sets forth requirements for alternative trading systems, previously issued digital commodities, and provisional registration until the bill is implemented.  

For more information on this bill, see CRS Insight IN12583, Crypto Legislation: An Overview of H.R. 3633, the CLARITY Act.

Text of the bill

Expand all

I Definitions; Rulemaking; Expedited Registration

II Offers and Sales of Digital Commodities

III Registration for Intermediaries at the Securities and Exchange Commission

IV Registration for Digital Commodity Intermediaries at the Commodity Futures Trading Commission

V Innovation and Technology Improvements

VI Anti-CBDC Surveillance State Act

I Responsible securities innovation

II Protecting against illicit finance

III Responsible innovation in decentralized finance

Sec. 308. Risk management standards for digital asset intermediaries Added Jun 1

Where this section came from

Not in the first version (Introduced in House, May 29).

  1. Jun 1, 2026 · Reported to Senate Marked up by Senate Committee on Banking, Housing, and Urban Affairs, May 14 Reported by Senate Committee on Banking, Housing, and Urban Affairs, Jun 1 Committee members' individual votes aren't in our records.
What is a markup?

A markup is a committee meeting where members go through a bill and vote on changes before sending it to the full chamber.

(a) In general. Before conducting trading activity (including routing orders and executing trades) through a decentralized finance trading protocol, a digital asset intermediary shall implement risk management standards as described in subsection (b) with respect to trading using that decentralized finance trading protocol.

(b) Requirements. The risk management standards applicable to a digital asset intermediary shall be comprised of the following:

(1) Conducting an effective risk analysis with respect to the decentralized finance trading protocol, including—

(A) money laundering and sanctions evasion risks, including whether trading will involve activity relating to a primary money laundering concern;

(B) fraud and market manipulation;

(C) operational and cybersecurity risk, including settlement; and

(D) implementing robust policies and procedures to mitigate the risks identified under this paragraph.

(2) Disclosing the risks identified under paragraph (1) using plain language to customers.

(3) Maintaining robust, risk-based capability to detect market manipulation, fraud, money laundering, and sanctions evasion occurring on the decentralized finance trading protocol, which may include the use of alternative tools that will properly target such risks, including distributed ledger analytics tools.

(4) Implementing an effective risk-based procedure for determining whether to execute, reject, or suspend an incoming or outgoing transaction relating to the decentralized finance trading protocol, as applicable, including a determination based on suspected risk of money laundering, sanctions evasion, fraud, or market manipulation.

(5) Consistent with this subsection, implementing other reasonable standards which may be required by rule.

(c) Examinations

(1) Compliance. The Commission or the Commodity Futures Trading Commission, or other appropriate self-regulatory organization, shall verify compliance with the requirements of this section as part of a regular examination of the digital asset intermediary at the frequency and under the conditions otherwise provided by law or rule.

(2) Rule of construction. Nothing in this section may be construed to limit the authority of the Financial Crimes Enforcement Network or the Office of Foreign Assets Control from conducting examinations, investigations, or enforcement actions relating to this section as otherwise provided by law.

(d) Rulemaking. Rules shall be adopted to implement this section as follows:

(1) The Department of the Treasury, in consultation with the Commission and the Commodity Futures Trading Commission, shall adopt rules to implement the money laundering and sanctions evasion risk analysis standards of this section.

(2) The Commission and the Commodity Futures Trading Commission shall adopt rules to implement this section other than the provisions described in paragraph (1).

(3) Rules adopted under this paragraph shall be reasonably tailored to the size of the applicable digital asset intermediary and risks of the digital asset intermediary that are reasonably knowable to the digital asset intermediary.

IV Responsible banking innovation

V Responsible regulatory innovation

VI Protecting software developers and software innovation

VII Protecting customer property

VIII Customer protection

IX Other matters