The Digital Asset Market Clarity Act has just passed through two key House committees and is on its way to a full floor vote. I think this is a game-changer for U.S. crypto regulation. The House Committee on Financial Services voted 32-19 to advance H.R. 3633, and just a day earlier, the House Agriculture Committee gave it the green light with a 47-6 vote.
"Blockchain technology and digital assets are reshaping the future of American finance,” said House Financial Services Chair French Hill (R-AR). “Congress has a historic opportunity to provide the clear regulatory framework needed to unlock this innovation."
This dual approval marks a major step forward for the bill, which now heads to the full House. The bill’s two versions will be combined into a single text for consideration.
What the CLARITY Act Means for Crypto
If passed, the CLARITY Act would officially strip the Securities and Exchange Commission (SEC) of its regulatory powers over most digital assets, leaving the CFTC (Commodity Futures Trading Commission) in charge. I believe this could create a more hands-off approach to regulation, which some see as a win for the industry. Of course, crypto issuers still have the option to register with the SEC if they want to target institutional investors.
“Today marks a historic moment for the digital asset industry,” said Ji Kim, President of the Crypto Council for Innovation. "The House Financial Services and Agriculture Committees both advanced the CLARITY Act—a major step toward clear crypto rules that define SEC and CFTC roles, protect self-custody, and safeguard consumers."
The Controversy
However, it’s not all smooth sailing. Critics argue that the bill could open regulatory loopholes and reduce financial safeguards. Despite some bipartisan support, the bill faced heavy criticism from Democrats during the Financial Services Committee markup. Some warned it could enable corruption, referencing former President Trump’s crypto ventures as a concern.
Others, like Rep. Sam Liccardo (D-CA), questioned the bill’s potential to allow companies to dodge regulation by labeling themselves as decentralized finance projects.
Republicans defended the bill, emphasizing that regulatory status should depend on a platform’s function, not its label. They shot down numerous Democratic amendments, including provisions barring presidential crypto ventures and taxpayer-funded bailouts for token issuers.
“This bill is not about the personal finances of any one individual,” Hill said. “It’s not an ethics bill.”
Andrew Madison
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