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

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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

IV Responsible banking innovation

V Responsible regulatory innovation

Sec. 505. Tokenization of securities Added Jun 1

Where this section came from

Not in the first version (Introduced in House, May 29, 2025).

  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) Definitions. In this section:

(1) Tokenization. The term tokenization means the process of creating a digital representation of all rights, obligations, or interests in a tangible or intangible asset on a distributed ledger or comparable technology.

(2) Tokenized. The term tokenized, with respect to an asset, means that the asset has undergone tokenization.

(b) Sense of Congress. It is the sense of Congress that States should promptly consider and adopt commercial law frameworks under the Uniform Commercial Code that provide clear and uniform rules for the ownership, control, and enforceability of rights relating to digital assets.

(c) Study. Not later than 360 days after the date of enactment of this Act, the Commission shall conduct a comprehensive study of the regulatory treatment of tokenized securities, including custody standards, interagency coordination, cross-border coordination, and consumer protection.

(d) Parity in regulatory treatment

(1) In general. Subject to paragraph (2), a tokenized security shall be treated, for all regulatory purposes, as the security that the tokenized security represents, except as otherwise provided by—

(A) section 106(a); or

(B) a rule, regulation, or order issued by the Commission.

(2) Requirement. A rule, regulation, or order described in paragraph (1)(B) may only be issued by the Commission to adapt the manner in which the applicable regulatory requirements are satisfied, to the extent necessary or appropriate—

(A) in light of the unique technological or other characteristics of digital assets or substantially similar technology; and

(B) consistent with—

(i) what is necessary or appropriate in the public interest; and

(ii) protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation.

(e) Prohibition on misrepresentation. Any statement or omission with respect to any material fact that is made by a person in connection with the offer, sale, or other representation regarding a tokenized security shall be subject to the securities laws, including applicable anti-fraud or anti-manipulation provisions under the securities laws.

(f) Agency action for tokenized securities

(1) In general. The Commission may issue rules governing tokenized securities pursuant to the requirements of this section.

(2) Requirements. Rules issued under this subsection may address, consistent with sections 106 and 107, how requirements applicable to an underlying security apply to custody, books and records, reconciliation with transfer agents or other recordkeepers, auditability, settlement finality, treatment of chain reorganizations, and other operational risks arising from the use of distributed ledger technology or comparable technology.

(g) Rule of construction regarding enforcement. Nothing in this section may be construed to prevent the Commission from enforcing the anti-fraud and anti-manipulation provisions of the securities laws, and the rules issued under the securities laws, with respect to tokenized securities, provided that the elements of those provisions are satisfied.

(h) Savings clauses

(1) Tokenized security. Any asset that is a security under the securities laws shall not cease to be a security solely because the asset is issued, recorded, represented, or transferred using distributed ledger technology or comparable technology.

(2) Effect on State law. Nothing in this section may be construed, interpreted, or applied in a manner that preempts, supersedes, invalidates, or otherwise affects any State property transfer rules, laws, regulations, or common law principles relating to the transfer or recording of real tangible or intangible assets or interests therein.

(3) Rulemakings, orders, and other actions. Notwithstanding any other provision of this section, section 106 shall apply to any rulemaking, order, or other action of the Commission under this section.

(4) No limit of ability to offer or sell. Nothing in this section, or any rule, regulation, or order promulgated under this section, may be construed to limit the ability of any person to offer or sell any tokenized security, consistent with the securities laws.

VI Protecting software developers and software innovation

VII Protecting customer property

VIII Customer protection

IX Other matters