The CLARITY Act (the Digital Asset Market Clarity Act of 2025, H.R. 3633) is the US bill meant to settle which crypto assets the SEC regulates and which the CFTC regulates, and to create registration rules for crypto exchanges, brokers and dealers. It passed the House 294–134 in July 2025. In the Senate it cleared two committees in 2026, but on September 15, 2026, a vote to begin floor debate failed 49–50, short of the 60 needed. As of late October 2026 it is not law and no new vote is scheduled. This guide explains what the Clarity Act crypto bill would do, where it stands, and what it changes for ordinary holders.
You’ll find this and every related walkthrough in our Bitcoin hub.
Key takeaways
- The CLARITY Act is a market-structure bill. Stablecoin rules were passed separately in the GENIUS Act, signed in July 2025.
- It sorts tokens into categories, gives the CFTC oversight of spot markets in “digital commodities,” and keeps the SEC in charge of fundraising and disclosures.
- A “mature blockchain” test lets tokens move from SEC-style oversight to commodity treatment once no single party controls the network.
- The Senate stalled over stablecoin yield and ethics rules for officials’ crypto dealings; the bill remains technically alive through a motion to reconsider.
- For everyday investors, little changes until it passes, but regulators are building interim rules under existing law.
What Is the Clarity Act?
For a decade, the US regulated crypto through laws written in the 1930s. The SEC argued most tokens were securities; the CFTC treated Bitcoin and Ether as commodities; and courts gave mixed answers, as in the 2023 Ripple ruling that treated XRP sales differently depending on who the buyer was. Projects, exchanges and investors couldn’t tell in advance which rules applied.
The Digital Asset Market Clarity Act, introduced on May 29, 2025 by House Financial Services Chair French Hill with bipartisan co-sponsors, tries to fix that by writing crypto-specific definitions and splitting oversight between the two agencies.
Correcting a common mix-up
Earlier versions of this page blended the CLARITY Act with the “Clarity for Payment Stablecoins Act,” a different 2023 House bill. They are not the same. Stablecoin rules ultimately became law through the GENIUS Act, signed on July 18, 2025, which sets reserve, licensing and redemption rules for payment stablecoins and bars issuers from paying interest to holders. Its rules take effect by January 2027 at the latest. The CLARITY Act deals with everything else: tokens, exchanges and intermediaries. Our stablecoin guide covers the GENIUS framework.
Key Provisions of the Clarity Act
Based on the House-passed text; the Senate rewrote parts, so final language could differ.
| Provision | What it does | Why it matters |
|---|---|---|
| Asset categories | Defines digital commodities, investment-contract assets and permitted payment stablecoins | Gives each token a home regulator |
| CFTC spot jurisdiction | CFTC registers and supervises digital-commodity exchanges, brokers and dealers | Fills the gap where no federal regulator oversaw spot crypto trading |
| SEC role | SEC oversees capital raising by token projects and disclosure, with tailored exemptions | Lets projects raise funds without full IPO-style registration |
| Mature blockchain test | A network qualifies once no person or group controls a large share (20% in the House text) of tokens or governance, among other criteria | Creates a path from security-like to commodity treatment |
| Customer protection | Segregation of customer assets, conflict-of-interest and disclosure rules for intermediaries | Aims to prevent FTX-style commingling |
| DeFi and developers | Excludes certain non-custodial activities and protects developers who don’t control user funds | Most debated area in the Senate |
The bill doesn’t address crypto taxation, which is handled by separate tax legislation.
How the Clarity Act Affects Different Crypto Sectors
- Exchanges: US platforms would register with the CFTC for commodity trading, with clear rules on custody and conflicts. That could let them list more tokens with legal certainty and pull activity back onshore.
- Token projects: a defined route to raise money and later qualify as a mature blockchain, instead of guessing whether the SEC would sue.
- DeFi: protections for developers and non-custodial software, with the Senate adding rules for parties that control trading protocols. How this lands determines whether US-facing DeFi front-ends can operate comfortably. See our DeFi explainer for what’s at stake.
- Stablecoin issuers and exchanges offering rewards: the Senate’s biggest fight was whether platforms can pay yield or rewards on stablecoin balances, which banks argue would pull deposits away from them.
- Bitcoin and Ether: already widely treated as commodities, so the direct effect is smaller; the indirect effect is a clearer regime for the venues that trade them.
Legislative Progress and Timeline
| Date | Event |
|---|---|
| May 29, 2025 | H.R. 3633 introduced in the House |
| June 10, 2025 | Advanced by House Financial Services (32–19) and Agriculture (47–6) committees |
| July 17, 2025 | Passed the House 294–134 during “Crypto Week,” a day before the GENIUS Act was signed |
| Late 2025 | Senate Banking and Senate Agriculture release discussion drafts |
| January 2026 | Coinbase withdraws support from a Senate Banking draft and a planned markup is postponed; Senate Agriculture advances its portion 12–11 on a party-line vote (January 29) |
| May 14, 2026 | Senate Banking advances the bill 15–9 after a stablecoin-yield compromise |
| September 15, 2026 | Senate cloture on the motion to proceed fails 49–50; Sen. Thom Tillis enters a motion to reconsider, keeping the bill alive |
| Late October 2026 | No new floor vote scheduled |
Even if the Senate passes its version, the House and Senate texts differ, so both chambers must agree on one bill before it reaches the President. The 119th Congress ends on January 3, 2027; bills not enacted by then must be reintroduced. For the broader legislative picture, see our crypto market structure bill coverage.
Why the Clarity Act Stalled
- Stablecoin yield: banks lobbied to stop exchanges paying rewards on stablecoin balances, warning of deposit flight; crypto firms said rewards are a core product. Compromise text emerged but didn’t fully settle it.
- Ethics: several Democrats demanded enforceable limits on senior officials, including the President, issuing or profiting from crypto ventures. A late ethics draft wasn’t adopted.
- DeFi and illicit finance: disagreement over anti-money-laundering duties for DeFi front-ends and developers.
- Arithmetic: Republicans hold 53 Senate seats, so at least seven Democrats are needed to reach 60 votes.
Industry Reactions
Support and opposition haven’t split neatly along party or industry lines:
- Crypto industry: exchanges, trade groups such as the Blockchain Association and the Digital Chamber, and venture firms have lobbied hard for passage, arguing that clear rules beat “regulation by enforcement.” But support has been conditional: Coinbase pulled its backing of a January 2026 Senate draft over stablecoin-reward and DeFi language, which delayed the Banking Committee markup, before later supporting a revised text.
- Banks: bank trade groups, including the American Bankers Association, accepted much of the framework but fought to restrict rewards on stablecoin balances, arguing they would drain deposits that fund lending.
- Critics: consumer advocates and several Senate Democrats, led by Elizabeth Warren on the Banking Committee, argued the bill would let projects escape securities law through nominal decentralization, weaken investor protection, and fail to address conflicts of interest involving officials’ crypto ventures.
- Regulators: SEC Chair Paul Atkins has told senators that agency rules alone could be reversed by a future commission, an argument for legislation rather than rulemaking only.
What Happens Next: Three Scenarios
- Lame-duck passage (late 2026): negotiators settle yield and ethics, the Senate reconsiders and passes a version, and the chambers reconcile quickly. Possible but, by most trackers and prediction markets in October 2026, a minority outcome.
- Reintroduction in 2027: the effort restarts in the new Congress, building on committee work already done.
- Regulation without legislation: the SEC and CFTC continue building a framework under existing authority, including the joint guidance on crypto asset categories they issued in March 2026 and the CFTC’s pending rulemaking. Faster, but easier for a future administration to reverse.
What It Means for You Now
- Nothing changes overnight. Your existing holdings, exchange accounts and tax rules are unaffected while the bill is pending.
- Watch your exchange’s terms. Stablecoin reward programmes are the product most exposed to the final language.
- Be sceptical of “regulation pump” narratives. Headlines about the bill have moved prices briefly in both directions; the eventual effect depends on details.
- Know the GENIUS timeline. Stablecoin issuer rules apply by early 2027 regardless of CLARITY’s fate.
- Compare internationally: the EU already runs a full regime under MiCA. See our EU crypto regulation guide.
FAQ
What does the Clarity Act do for crypto?
It would define categories of digital assets, give the CFTC authority over spot trading of digital commodities, keep the SEC responsible for token fundraising and disclosures, create a “mature blockchain” path from security-like to commodity treatment, and set custody and conflict rules for exchanges and brokers. Stablecoin issuance is covered by the separate GENIUS Act.
Has the Clarity Act passed?
Not as of late October 2026. It passed the House in July 2025 and cleared Senate Agriculture and Banking committees in 2026, but a September 15, 2026 Senate vote to start debate failed 49–50. A motion to reconsider keeps it technically alive; otherwise it would need to be reintroduced in the next Congress.
Is the Clarity Act the same as the GENIUS Act?
No. The GENIUS Act, signed in July 2025, regulates payment stablecoins: reserves, licensing, redemption and a ban on issuer-paid interest. The CLARITY Act covers the broader market: how tokens are classified and how exchanges, brokers and dealers are regulated. They were designed as companion bills.
How does the Clarity Act affect Bitcoin?
Directly, very little: Bitcoin is already treated as a commodity. Indirectly, a clear CFTC regime for spot exchanges and brokers could strengthen the US venues where Bitcoin trades and make institutions more comfortable participating.
Crypto is volatile and risky; this is education, not financial advice. Do your own research.
