The Digital Asset Market Clarity Act of 2025 was introduced on May 29, 2025, by Representative French Hill. On July 17, 2025, the House passed the legislation with a bipartisan vote of 294-134. A revised draft, incorporating input from both House and Senate committees, was published on September 14, 2026.
The Act establishes a three-tier classification system for digital assets. Digital commodities fall under the jurisdiction of the CFTC, while investment contract assets remain under SEC oversight. Stablecoins are designated as a separate category. The law also mandates that brokers, dealers, and exchanges for digital commodities register with the CFTC.
New regulations require the segregation of customer funds from company assets to enhance protection. The CFTC gains explicit authority over spot digital commodity markets, filling a previous regulatory gap. The SEC retains its role in overseeing securities offerings, though the legislation narrows the definition of what constitutes a security in the crypto sector.
The bill requires the CFTC and SEC to conduct joint rulemaking to define key terms and manage mixed transactions that do not fit into a single category. Additionally, the legislation provides exemptions for specific decentralized finance activities, with the final details to be determined through the collaborative rulemaking process.
