#CryptoClarityAct Here’s a concise briefing on the Digital Asset Market Clarity Act of 2025 (CLARITY Act):

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🏛️ What Is the CLARITY Act?

A bipartisan bill (H.R. 3633), introduced May 29, 2025 by Rep. French Hill and others, passed the House on July 17, 2025 with a 294–134 vote, and now moves to the Senate .

Its goal is to eliminate regulatory uncertainty by clearly designating which federal regulator oversees which digital assets.

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Key Provisions

1. Clear Asset Classification

Defines “digital commodities” vs. “investment contract assets” (i.e., tokens subject to SEC oversight) .

Assigns digital commodities (e.g. Bitcoin) to the CFTC, while ICOs and tokens deemed securities fall under the SEC .

2. Registration & Compliance Requirements

Platforms (exchanges, brokers, dealers) must comply with anti‑money‑laundering rules under the Bank Secrecy Act, provide custody segregation, and adhere to disclosure standards .

Mature blockchain networks may qualify for exemptions from SEC registration if certain conditions—including decentralized control—are met .

3. DeFi & Custody Clarifications

Decentralized finance (DeFi) protocols that do not act as intermediaries may be exempt from SEC regulation, and users are granted a statutory right to self‑custody .

Custody firms are not required to hold client assets on their own balance sheets, alleviating regulatory burden and preserving flexibility .

4. Transparency Measures

Requires issuer disclosures and standardized transparency/reporting schedules for reserves and operations, similar to audit best practices .

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💼 Why It Matters

Introduces a dual-track regulatory system, reducing overlap and ambiguity between the SEC and CFTC .

Designed to boost institutional confidence and stability, helping firms like Coinbase and Galaxy Digital prepare for expanded crypto market participation .

Recognized by the industry as a turning point toward clearer, more stable rules for digital assets .

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⚠️ conflicts of interest and reduced consumer