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Interpretation of the "Clarity Act"—The Bull Market Engine, The Path to Redemption in the Crypto Circle
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2025 Digital Asset Market Clarity Act
U.S. Cryptocurrency-Related Legislation
The "2025 Digital Asset Market Clarity Act" (referred to as the "CLARITY Act"), a cryptocurrency regulation bill passed by the U.S. House of Representatives on July 17, 2025, aims to establish a dual regulatory framework for digital asset markets and clarify classification rules. It is currently under review by the Senate. [2]

The bill classifies digital assets into two categories: "securities" and "commodities." Securities are regulated by the U.S. Securities and Exchange Commission (SEC), while commodities are overseen by the Commodity Futures Trading Commission (CFTC). Hybrid assets require coordination between the two agencies. The bill introduces a "Mature Blockchain System" certification mechanism, whereby native tokens of blockchain systems that meet features such as decentralization and open-source code can be regulated as commodities. Related digital commodity exchanges must register with the CFTC. The bill provides exemptions for non-custodial services in decentralized finance (DeFi) activities and allows traditional financial institutions to participate in digital commodity custody and trading through compliant channels. [1]

The bill was jointly proposed by the House Financial Services Committee and the Agriculture Committee on May 29, 2025. It was approved by the House with 294 votes in favor on July 17, and then forwarded to the Senate for review. Due to government shutdown threats, the originally scheduled Senate markup meeting on September 30 was postponed to the week of October 20. [2][3]

Chinese Name
2025 Digital Asset Market Clarity Act
Enactment Date
July 2025
Development History
In July 2025, the U.S. House of Representatives unanimously passed three cryptocurrency-related bills, including the "Guidance and Establishment of the U.S. Dollar Stablecoin Innovation Act" (referred to as the "GENIUS Act") and the "2025 Digital Asset Market Clarity Act" (referred to as the "CLARITY Act"). [1]
Content Interpretation
Defines the scope and classification of digital assets. The bill divides digital assets into “securities” and “commodities.” Digital commodities are defined as assets intrinsically linked within blockchain systems, with value derived from assets used in those systems, such as Bitcoin and Ether. Digital commodities explicitly exclude securities, licensed payment stablecoins, derivatives, and bank deposits. The bill clarifies the distinction between digital commodities and digital securities through exclusion clauses. If a digital asset falls within the traditional securities category (e.g., representing ownership, debt, or meeting the "investment contract" definition under the Howey test, meaning investors seek profits through third-party efforts), it is classified as a securities digital asset, such as tokenized stocks, bonds, or tokens dependent on issuer operations for profit. [1]
Defines the regulatory boundaries between the SEC and CFTC. Clarifies that the CFTC has primary regulatory authority over the spot digital commodity markets, mainly overseeing digital commodity exchanges, brokers, traders, and custodians. The SEC is responsible for regulating securities-type digital assets. For "hybrid" assets that may possess both securities and commodity features, the bill requires coordination between the SEC and CFTC. [1]
Introduces the concept of “Mature Blockchain System,” enabling regulatory transition through certification. The main features of a mature blockchain system (mature blockchain system) include: decentralization (not controlled by any individual or group), open-source code, and automated operation based on preset rules. Once a blockchain system passes certification (e.g., submitting proof of no centralized control and SEC does not object within 60 days), it is deemed "mature." If the blockchain system related to a digital commodity is certified as "mature," regulatory authority shifts entirely to the CFTC, and the SEC no longer exercises securities oversight, completing the transition from "securities" to "commodities" compliance. [1]
Provides partial exemptions for DeFi activities. The bill offers specific exemptions for decentralized finance (DeFi) protocols, such as coding, node operation, front-end interface provision, and non-custodial wallets, which are generally not considered financial services and thus not subject to SEC regulation. However, basic anti-fraud and anti-manipulation provisions still apply. This mechanism avoids overregulation of DeFi's underlying technology development and decentralized operations while maintaining market order through enforcement powers against fraud. [1]
Facilitates participation of traditional financial institutions in digital asset trading. The bill offers multiple pathways for traditional financial institutions to participate, primarily by registering as compliant entities and adhering to regulatory requirements (such as customer protection and anti-fraud measures). They can engage in digital commodity trading, brokerage, and custody. For example, the bill allows traditional financial institutions to register as digital commodity exchanges, making it possible for stocks and digital commodities to be traded in the same venue, similar to NYSE and NASDAQ. Banks can also participate in digital commodity custody and financial services, with custody assets not counted on their balance sheets, or remove capital barriers for entry. [1]
Supports innovation in the digital asset field. The bill upgrades the SEC's mission by adding an "innovation" goal and establishing the "Financial Technology Innovation Center" (FinHub); it also creates the CFTC Labs (LabCFTC). The bill mandates research into DeFi, non-fungible tokens (NFTs), and illegal uses of digital assets, analyzing risks, benefits, and regulatory gaps.