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

Sec. 109. Insider trading with respect to ancillary asset transactions 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) Definition. In this section, the term distributed ledger control person has the meaning given the term in section 104(a).

(b) Application of securities laws. Any provision of the securities laws, or any regulation issued under the securities laws, including any duty that arises under the securities laws or under such a regulation, that applies with respect to a person that purchases, sells, or offers to sell a security, security-based swap, or security-based swap agreement while in possession of material nonpublic information, or communicates such information in connection with or in the transaction, shall apply to any offer, sale, or purchase of a security, security-based swap, or security-based swap agreement in which an ancillary asset is offered, sold, or purchased, including any offer, sale, or purchase conducted pursuant to Regulation Crypto, as adopted pursuant to section 103, whether conducted by an ancillary asset originator, a related person, or any other person.

(c) Rulemaking

(1) In general. The Commission shall adopt rules to implement subsection (b), which shall—

(A) include rules providing an affirmative defense for an offer, sale, or purchase of an ancillary asset made pursuant to a written plan adopted before the applicable person became aware of material nonpublic information, which shall be consistent with section 240.10b5–1 of title 17, Code of Federal Regulations, or any successor regulation; and

(B) be interpreted and applied in a manner that is consistent with, and may not be construed to expand or contract, the principles of, and judicial precedent interpreting (by the Supreme Court of the United States), the securities laws and the regulations issued under the securities laws, as those principles and that judicial precedent are in effect, as of the day before the date of enactment of this Act.

(2) Considerations. In adopting rules under paragraph (1), the Commission shall consider, subject to subsection (e), whether, and under what circumstances, an offer, sale, purchase, or communication should be addressed by those rules, including by—

(A) a distributed ledger control person, any person acting on behalf of, or in concert with, an ancillary asset originator, related person, or distributed ledger control person, or a person that obtained material nonpublic information in the course of a relationship of trust and confidence with an ancillary asset originator or related person, where material nonpublic information regarding an ancillary asset originator or an ancillary asset was—

(i) obtained pursuant to or in breach of a duty of trust or confidence;

(ii) deceptively obtained through theft, bribery, misrepresentation, or espionage or in violation of any Federal law protecting computer data; or

(iii) obtained from an ancillary asset originator or related person, the conduct of which is described in subparagraph (B); or

(B) an ancillary asset originator or related person that purchases, sells, or otherwise distributes an ancillary asset, or communicates material nonpublic information regarding an ancillary asset originator or ancillary asset, while aware of material nonpublic information that is required to be disclosed in any disclosure furnished, or required to be furnished, under section 4B of the Securities Act of 1933, as added by this Act, or Regulation Crypto, as adopted pursuant to section 103.

(d) Enforcement. A violation of subsection (b), or any rule adopted under subsection (c), shall be treated as a violation of the securities laws and subject to the penalties under sections 21A and 32 of the Securities Exchange Act of 1934 (15 U.S.C. 78u–1, 78ff) and to all other remedies available under the securities laws.

(e) Rule of construction. Consistent with section 4B(b)(3) of the Securities Act of 1933, as added by this Act, nothing in this section may be construed to apply the securities laws, or any regulation issued under the securities laws (including any rule adopted under subsection (c)), to any secondary market transaction in an ancillary asset that is not otherwise a transaction in a security, security-based swap, or security-based swap agreement.

II Protecting against illicit finance

III Responsible innovation in decentralized finance

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