The US Senate Banking Committee on Thursday advanced the Digital Asset Market Clarity Act (CLARITY ACT) of 2025. This major crypto market-structure bill would establish regulatory rules for digital assets in the country. The legislation passed the committee in a 15-9 bipartisan vote after nearly a year of negotiations and will now move to the full Senate for consideration.
Defines “digital commodities”: The bill defines a digital commodity as a digital asset “intrinsically linked” to a blockchain system whose value derives from its use. It excludes traditional securities, swaps, derivatives, some stablecoins, pooled investment vehicles, and digital collectibles from that category.
Other important definitions
- Blockchain application: “any executable software that is deployed to a blockchain and composed of source code that is publicly available, including a smart contract or any network of smart contracts, or other similar technology.”
- Blockchain protocol: “publicly available source code of a blockchain that is executed by the network participants of a blockchain to facilitate its functioning, or other similar technology.”
- Decentralized governance system: “any transparent, rules-based system permitting persons to form consensus or reach agreement in the development, provision, publication, maintenance, or administration” of a blockchain system, where participation is not limited to or controlled by a person or coordinated group.
- Digital asset: “any digital representation of value which is recorded on a cryptographically-secured distributed ledger or other similar technology.”
- Digital commodity exchange: “a trading facility that offers or seeks to offer a cash or spot market in at least 1 digital commodity.”
- Mixed digital asset transaction: “a transaction in which a digital commodity is traded for a security.”
- Mature blockchain system: “a blockchain system, together with its related digital commodity, that is not controlled by any person or group of persons under common control.”
- End user distribution: “a distribution of a unit of a digital commodity” that includes rewards for users, staking, mining, validating, and other blockchain participation activities.
Splits oversight: The Commodity Futures Trading Commission (CFTC) has primary oversight over spot markets for digital commodities, while the Securities and Exchange Commission (SEC) retains authority over crypto assets that qualify as securities. The two agencies must jointly issue rules for defining key terms, determining how to handle mixed digital asset transactions, and establishing processes for delisting assets that violate securities or commodities laws.
Creates a registration regime: Crypto exchanges, brokers, and dealers handling digital commodities must register with the CFTC. The bill requires the regulator to create an expedited registration process within 180 days of enactment. Firms…
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