Today, House Agriculture Committee Ranking Member Angie Craig (D-MN-02) and Commodity Markets, Digital Assets, and Rural Development Subcommittee Ranking Member Don Davis (D-NC-01) introduced the bipartisan Digital Asset Market Clarity (CLARITY) Act of 2025 as original cosponsors with Representatives French Hill (R-AR-02), Glenn “GT” Thompson (R-PA-15), Tom Emmer (R-MN-06), Bryan Steil (R-WI-01), Dusty Johnson (R-SD-AL), Ritchie Torres (D-NY-15) and Warren Davison (R-OH-08).

“Digital assets, including crypto currencies, are moving from a unique, novel financial product to becoming more and more integrated with our current financial architecture. I believe it is critical that Congress establish clear protections for consumers and retail investors as well as rules of the road for businesses dealing in digital assets. The bipartisan CLARITY Act will ensure oversight and regulation of digital assets in our financial system so that business owners, innovators and consumers can engage with in these markets knowing what is expected of them.

“While I agree we can no longer wait to regulate digital assets – and we must act to protect consumers – I intend to lead the effort under the law to prevent this President – or any future President – from participating in this space. We should all be able to agree that actions prohibited by members of Congress should also not be allowed by administration officials, including the President," said Ranking Member Craig.

“Families, entrepreneurs, and small businesses across our country, including rural areas in eastern North Carolina, seek ways to engage in the modern economy. Digital assets present a chance for a more inclusive financial future, but we need clear rules and fair oversight for innovation to thrive. Congress must ensure that America shapes digital finance, creates opportunities, protects consumers, and supports overlooked communities,” said Congressman Davis, the ranking members of the Commodity Markets, Digital Assets, and Rural Development Subcommittee.

The CLARITY Act establishes a new regulatory framework for the issuance and trading of digital assets by outlining specific criteria for when a digital asset is regulated by the Commodity Futures Trading Commission (CFTC) or the Securities and Exchange Commission (SEC). Under the legislation’s regulatory framework, the CFTC would be given regulatory authority over the “digital commodities” market. This market would include digital assets related to blockchain systems deemed “mature,” or largely decentralized. While the bill provides clarity regarding what types of digital assets would fall under the “digital commodity” definition, it directs the CFTC and SEC to define several key terms through agency rulemakings. Notably, the bill would give the CFTC authority over most secondary market crypto transactions where investors buy and sell previously issued crypto assets. 

As with Financial Innovation and Technology for the 21st Century Act from the previous Congress, the bill would grant CFTC new authorities, generally providing it exclusive jurisdiction over “cash” or “spot” market digital commodity transactions (with some exceptions) and requiring CFTC registration for entities (including exchanges, brokers and dealers) offering trade in digital commodities. The bill would impose certain requirements on intermediaries, including ensuring trading is not susceptible to manipulation, requiring disclosures, customer fund segregation and addressing market integrity and recordkeeping requirements.