#CryptoClarityAct 🧾 What Is the CLARITY Act?
Officially titled the Digital Asset Market Clarity Act of 2025 (H.R. 3633), it passed the U.S. House of Representatives on July 17, 2025, with a vote of 294–134 .
The Act aims to resolve long-standing regulatory confusion—specifically defining what constitutes a digital commodity vs. a security, and assigning authority clearly between the CFTC and SEC .
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🧭 Key Provisions
✅ Agency Jurisdiction & Definitions
Digital commodities (e.g. Bitcoin) fall under CFTC oversight, while assets issued as investment contracts are regulated by the SEC.
Introduces legal terms like “investment contract asset” and defines what qualifies as a mature blockchain .
Provides a safe harbor mechanism allowing tokens to transition from SEC to CFTC oversight as they become decentralized in time or governance .
🧾 Consumer Protection & Financial Integrity
Requires crypto platforms to segregate customer funds, follow Bank Secrecy Act / AML guidelines, and register as financial institutions .
Mandates disclosures for ownership structure, conflicts of interest, governance, and business operations .
🔄 DeFi Exemptions & Structural Flexibility
Provides exemptions for certain decentralized finance (DeFi) protocols, subject to defined criteria.
Permits dual registration paths for firms handling both commodity and securities-like tokens .
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🧱 Legislative Context: Crypto Week Momentum
The CLARITY Act was one of three major bills passed by the House during what media labeled “Crypto Week” (mid-July 2025):
GENIUS Act: Regulates stablecoins with mandatory 1:1 backing, audits, disclosures; now signed into law .
Anti‑CBDC Surveillance State Act: Bans issuance of a U.S. central bank digital currency—focused on preserving privacy and preventing over‑surveillance .
Together, these legislative moves signal a broader push for structured crypto regulation in the U.S. .
