Republicans on May 29 introduced bipartisan legislation that would establish a federal regulatory framework for the offer and sale of digital assets in the United States.
“Our bill brings long-overdue clarity to the digital asset ecosystem [and] prioritizes consumer protection and American innovation,” said U.S. House Financial Services Committee Chairman French Hill (R-AR), who sponsored the Digital Asset Market Clarity (CLARITY) Act of 2025, H.R. 3633.
If enacted, H.R. 3633 would protect consumers by strengthening transparency and accountability for market participants, according to a bill summary provided by Rep. Hill and the bill’s eight original cosponsors, including U.S. House Majority Whip Tom Emmer (R-MN) and U.S. Reps. Glenn “G.T.” Thompson (R-PA), Bryan Steil (R-WI), Dusty Johnson (R-SD), and Angie Craig (D-MN).
“The introduction of CLARITY is an exciting step towards delivering the certainty and clarity digital asset entrepreneurs and markets need,” said Rep. Thompson, chairman of the U.S. House Agriculture Committee. “This landmark legislation will protect consumers, unleash entrepreneurship, and ensure the United States sets the global standard for the future of innovation.”
For instance, developers would be required to provide accurate, relevant disclosures, including information relating to the digital asset project’s operation, ownership, and structure, states the summary.
Additionally, customer-facing digital asset firms, like brokers and dealers, would be required to provide appropriate disclosures to customers; segregate customer funds from their own; and address conflicts of interest through registration, disclosure, and operational requirements, the summary says.
“This bill is a bold step to ensuring that the next iteration of the internet is developed by Americans and driven by our values,” Rep. Emmer said.
Rep. Steil pointed out that the CLARITY Act would ensure that financial innovation and development of digital assets occurs in the United States. “Our bill secures American dominance, democratizes digital assets, unleashes innovation, and protects consumers from fraud,” he added.
For example, the bill would help foster the development of digital asset projects. Digital asset developers would have a clear pathway to raise funds under the jurisdiction of the Securities and Exchange Commission (SEC), while market participants would have a trusted pathway to trade digital commodities through intermediaries and exchanges overseen by the Commodity Futures Trading Commission (CFTC).
The CLARITY Act also would provide clarity to customer-facing digital asset firms by establishing clear lines between the two market regulators — SEC and CFTC — and creating comprehensive registration regimes to permit digital asset firms to lawfully serve customers in digital asset markets, says the summary.
“America should be the global leader in the digital assets marketplace, but we can’t do that without establishing a clear regulatory framework,” said Rep. Johnson. “This legislation gives our markets the clarity they need to thrive, protect consumers, and foster innovation.”
H.R. 3633 is under consideration in both the U.S. House Financial Services Committee and the U.S. House Agriculture Committee.