Bipartisan Bill Seeks Clarity for Digital Asset Regulation

US Representative French Hill has introduced the "Digital Asset Market Clarity Act of 2025," also known as the "CLARITY Act of 2025," a bipartisan bill aimed at providing a regulatory framework for digital assets. The bill has garnered support from lawmakers on both sides of the aisle, including three Democratic co-sponsors, highlighting the growing consensus on the need for clear guidelines in the digital asset ecosystem.

The CLARITY Act addresses the roles of the United States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in overseeing digital assets. It seeks to resolve longstanding questions about which agency is responsible for which types of digital assets, thereby bringing clarity to the regulatory landscape. The bill mandates that developers provide accurate and relevant disclosures about a project’s operation, ownership, and structure, ensuring transparency and accountability.

In addition to developer disclosures, the CLARITY Act introduces new compliance requirements for customer-facing firms such as brokers and dealers. These requirements include clear disclosures to customers, segregation of customer assets from company funds, and mitigation of conflicts of interest through strict registration, transparency, and operational standards. These measures are designed to enhance consumer protection and build trust in the digital asset market.

The introduction of the CLARITY Act is part of a broader effort to establish a comprehensive regulatory framework for digital assets. This framework is designed to prioritize consumer protection and American innovation, building on previous work in the 118th Congress. The bill's bipartisan support underscores the growing recognition of the need for clear and consistent regulations in the digital asset space.

On May 21, 2025, House Majority Whip Tom Emmer re-introduced the bipartisan Blockchain Regulatory Certainty Act (BRCA) to the 119th Congress. This act focuses on providing regulatory certainty for blockchain technology and digital assets, further emphasizing the importance of clear guidelines in this emerging field. The introduction of these bills reflects a growing consensus among lawmakers that a well-defined regulatory framework is essential for the sustainable growth of the digital asset industry.

By establishing clear roles for regulatory agencies and setting standards for compliance, these bills aim to foster an environment that supports innovation while protecting consumers. The CLARITY Act and other related legislation represent a significant milestone in the regulation of digital assets. As the digital asset ecosystem continues to evolve, these regulatory frameworks will play a crucial role in shaping its future. The bipartisan support for these initiatives indicates a commitment to creating a balanced and effective regulatory environment that can adapt to the changing landscape of digital assets.