Newly introduced bipartisan legislation on Capitol Hill would establish a federal regulatory framework for 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 on May 29 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 the sponsoring lawmakers.
For instance, developers would be required to provide accurate, relevant disclosures, including information relating to the digital asset project’s operation, ownership, and structure.
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.
“The introduction of CLARITY is an exciting step towards delivering the certainty and clarity digital asset entrepreneurs and markets need,” said U.S. Rep. Glenn “G.T.” Thompson (R-PA), 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.”
Thompson led seven other original cosponsors in introducing H.R. 3633, including House Majority Whip Tom Emmer (R-MN) and U.S. Reps. Bryan Steil (R-WI), Dusty Johnson (R-SD), Warren Davidson (R-OH), Angie Craig (D-MN), Ritchie Torres (D-NY), and Don Davis (D-NC).
“This bill is a bold step to ensuring that the next iteration of the internet is developed by Americans and driven by our values,” Emmer said.
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 instance, the bill would strengthen the market by fostering 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, the summary says.
“America should be the global leader in the digital assets marketplace, but we can’t do that without establishing a clear regulatory framework,” Johnson said. “This legislation gives our markets the clarity they need to thrive, protect consumers, and foster innovation.”
Davidson added that the proposed measure would protect the right to self-custody and the freedom to transact. “These principles are essential for innovation, economic growth, and individual liberty,” he said.
Craig said that digital assets, including crypto currencies, are moving from a unique, novel financial product to becoming more and more integrated with the nation’s 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,” she said.
Torres thinks that regulatory uncertainty has held back the full potential of digital innovation in the United States, and the CLARITY Act will deliver clear rules of the road that entrepreneurs, investors, and consumers deserve.
“By protecting consumers, promoting transparency, and closing regulatory gaps, this legislation will ensure that America remains the global leader in digital asset innovation,” said the congressman.
“Digital assets present a chance for a more inclusive financial future, but we need clear rules and fair oversight for innovation to thrive,” said Davis. “Congress must ensure that America shapes digital finance, creates opportunities, protects consumers, and supports overlooked communities.”
H.R. 3633 is under consideration in both the U.S. House Financial Services Committee and the U.S. House Agriculture Committee.