US House Pushes Landmark CLARITY Act Toward Finish Line

A Regulatory Framework Years in the Making

The House Financial Services Committee is pressing lawmakers to push the Digital Asset Market Clarity Act (CLARITY Act) across the finish line. The bill, formally known as H.R. 3633, represents the most sweeping attempt yet to bring regulatory order to the US digital asset market.

Introduced on May 29, 2025, by House Financial Services Committee Chairman French Hill, the CLARITY Act was designed to establish clear, functional requirements for digital asset market participants, prioritizing consumer protection while fostering innovation. The House passed the bill on July 17, 2025, by a bipartisan vote of 294 to 134, though most Democratic votes against it cited concerns over investor protections.

At its core, the legislation divides regulatory jurisdiction between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). It would grant the CFTC exclusive jurisdiction over digital commodity spot markets while maintaining SEC authority over investment contract assets. Anyone acting as a digital commodity exchange, broker, or dealer would be required to register with the CFTC within 180 days of enactment.

Senate Clears Key Hurdle, But Challenges Remain

After months of delays, the Senate Banking Committee voted 15 to 9 in a markup session to advance the CLARITY Act, teeing up the legislation for a potential full Senate vote. The committee had previously postponed a markup session in January 2026, with disagreements over stablecoin yield provisions a central sticking point. The American Bankers Association has lobbied against any yield-bearing stablecoin framework, a dispute that has been the primary obstacle to Senate progress since early 2026.

The vote was split largely along partisan lines, with all 13 Republican members supporting the bill and only two Democrats voting in favor. The bill must now be merged with a separate version from the Senate Agriculture Committee before it can go to the full Senate floor, where it will need 60 votes to advance.

The White House has been the most vocal institutional supporter of the bill, with its stated target being a signed bill by July 4. Treasury Secretary Bessent has cited spring 2026 as a target for passage. JPMorgan analysts have described CLARITY Act passage as a positive catalyst for digital assets, pointing to regulatory clarity, institutional scaling, and tokenization growth as key drivers.

Supporters argue the bill is essential to keeping the United States competitive globally, providing long-overdue regulatory certainty while reinforcing America's leadership in the global financial system. Critics, however, warn that the dual SEC and CFTC structure could create inefficiencies, and some Democratic senators have raised unresolved concerns around DeFi oversight, anti-money laundering rules, and ethics provisions.

Sources:
Latham and Watkins: US Crypto Policy Tracker, Legislative Developments
Elliptic: CLARITY Act Advances from Senate Banking Committee
CNBC: Crypto Industry Scores Win as CLARITY Act Clears Senate Hurdle