Digital Assets Market Structure to Receive Clear Guidance from Congress
The Digital Asset Market Clarity Act of 2025 (CLARITY) has recently passed the U.S. House of Representatives with a significant margin, marking a significant milestone in establishing a comprehensive regulatory framework for digital assets in the United States.
### Status of the CLARITY Act
As of mid-July 2025, the Act has passed in the House after bipartisan support and a historic voting session that also included other major crypto bills. The bill has successfully advanced through the House Committees on Financial Services and Agriculture earlier in June 2025. The Senate Banking Committee is scheduled to hold hearings about digital asset legislative frameworks soon, with a Senate draft bill expected, but the full Senate passage or enactment into law is still pending as of now.
### Regulatory Framework and Goals
The CLARITY Act aims to:
1. Define key digital asset categories, including a new classification called "restricted digital assets" which limits their resale unless specific criteria are met, helping manage risks and investor protections. 2. Establish a clear division of regulatory responsibilities: - The Commodity Futures Trading Commission (CFTC) would have primary jurisdiction over many digital assets classified as commodities. - The Securities and Exchange Commission (SEC) retains jurisdiction over investment contracts involving digital commodities, maintaining oversight on certain security-like digital assets. 3. Provide statutory definitions and operational rules for issuers, intermediaries, and exchanges handling digital assets, including those engaged in issuance, custody, and trading. 4. Promote responsible innovation and consumer protection while securing the US as a global leader in digital finance.
### Background and Legislative Influence
The CLARITY Act builds on the earlier Financial Innovation and Technology for the 21st Century Act (FIT21), which passed the House in 2024 but stalled in the Senate, expanding and codifying its principles around digital asset regulation. Modelled as a market structure bill, CLARITY was introduced by Representative French Hill (R-AR) and reflects bipartisan efforts to bring legal certainty to the crypto market structure.
In essence, the Digital Asset Market Clarity Act of 2025 represents a landmark, bipartisan step toward a structured, balanced regulatory framework that delineates clear roles for the SEC and CFTC, addresses digital asset classifications, and fosters safe innovation in the evolving digital asset ecosystem. The Act requires several joint rulemakings by the SEC and CFTC to further define certain terms. Additionally, CLARITY aims to clarify regulatory oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) for digital assets. The Act exempts digital commodity issuers from traditional securities registration for certain primary transactions.
- As the Digital Asset Market Clarity Act of 2025 progresses through the Senate, it's crucial to consider the implications of this legislation on intellectual property rights related to technology innovations in the digital asset sphere, particularly in the development of novel blockchain solutions for sports industries.
- With the Act's aim to ensure responsible innovation and consumer protection, it's essential to discuss the role of intellectual property rights in safeguarding technological advancements in sports, such as sports data analytics or virtual reality experiences, within the broader context of the digital assets regulatory framework established by CLARITY.
