On the evening of June 8, 2025, the Alternative New Substitute (ANS) to the U.S. CLARITY Act was released. The ANS, an updated version of the bill that was previously submitted, includes recent revisions and additions. It serves as the foundation for future discussions by the House Financial Services Committee and the Agriculture Committee. On June 10, the two committees reviewed and passed the CLARITY Act with 47 votes in favor and 6 votes against, and 32 votes in favor and 19 votes against, respectively. The bill has now entered the full House vote process.

1. Bill Contents

The full title of the CLARITY Act is Digital Asset Market Clarity Act of 2025, which was first introduced by J. French Hill, the chairman of the U.S. House Financial Services Committee and a Republican congressman from Arkansas, on May 29, 2025. After several rounds of hearings and reviews, the latest version was finalized. The current version is divided into five chapters and covers:

·Title I – Definitions; Rulemaking; Provisional Registration

This chapter revises laws like the Securities Act of 1933, the Securities Exchange Act of 1934, and the Commodity Exchange Act. It adds core definitions like "blockchain," "decentralized governance systems," "digital assets," and "digital commodities." It specifies that USDT, USDC, securitized tokens, and other non-speculative assets are not "digital commodities" and sets deadlines for the SEC and CFTC to issue relevant rules. It also establishes a temporary registration system for digital commodity exchanges, traders, and brokers.

·Title II – Offers And Sales Of Digital Commodities

This chapter sets out the criteria for identifying "investment contract assets," outlines exemptions for primary issuances and secondary market resales, and defines requirements for "mature blockchain systems." If a digital commodity is raised as an investment contract under securities law, it will be subject to the Securities Act; however, secondary market resales by non-issuers will not be treated as investment contracts and will not fall under securities regulations.

·Title III – Registration For Intermediaries At The Sec

This chapter brings licensed payment stablecoins and digital commodities under SEC's anti-fraud jurisdiction and sets exemptions for DeFi activities to avoid overregulation of non-custodial developers and infrastructure providers. Blockchain and DeFi-related activities, including compiling, forwarding, retrieving, verifying transactions, providing computing power, operating nodes/oracles, and developing blockchain systems, are exempt from certain securities regulations under the Securities Exchange Act.

·Title IV—Registration For Digital Commodity Intermediaries At The Cftc

This chapter clarifies the CFTC’s oversight over the digital commodity spot market. It mandates that futures traders use qualified custodians for digital assets, establishes a registration system for trading certifications and intermediaries, and extends the obligations of Commodity Pool Operators (CPOs) and Commodity Trading Advisors (CTAs) to the digital commodity space.

·Title V—Innovation And Technology Improvements

This chapter reaffirms Congress's commitment to supporting digital asset innovation. It requires the creation of a Financial Technology and Innovation Strategy Center and LabCFTC within 180 days of the bill’s enactment. It also mandates joint research by the SEC and CFTC on areas such as DeFi, NFTs, blockchain payments, market infrastructure, and financial literacy.

2. Background of the Revisions

The CLARITY Act is a bipartisan initiative aimed at creating a clear, unified regulatory framework for the U.S. digital asset market. Its main goals can be summarized as follows: Establish clear classification standards for digital assets (including tokens, stablecoins, DeFi tools, etc.) to resolve long-standing debates on whether they are "securities" or "commodities." Clarify the regulatory roles of the SEC and CFTC, with the CFTC overseeing the digital commodity spot market and the SEC handling securities issuance and anti-fraud enforcement. Set up temporary registration systems and market research requirements to balance investor protection with technological innovation.

Timeline (2025)

Events

May 29

CLARITY Act was first introduced by Congressman J. French Hill.

June 4

A House hearing titled "The Future of American Innovation and Digital Assets: From Blueprint to Functional Framework" took place, gathering opinions from the industry, regulators, and academia, suggesting amendments on asset classification, regulatory boundaries, DeFi exemptions, and disclosure mechanisms.

June 8

The Alternative New Substitute (ANS) to the CLARITY Act was released, consolidating the latest revisions.

June 9

The Blockchain Regulatory Certainty Act (BRCA) was incorporated into the CLARITY Act to protect non-custodial developers and infrastructure providers.

June 10

The Financial Services Committee and Agriculture Committee approved the CLARITY Act, which would be submitted to the full House for voting.

Table: CLARITY Act Progress Timeline

One of the most controversial issues during the bill's progression has been the anti-money laundering provisions. Critics have questioned whether the CLARITY Act provides adequate safeguards against illegal financing for decentralized systems. Traditional anti-money laundering regulations rely on intermediaries to monitor and report suspicious transactions, but DeFi protocols operate without centralized intermediaries, potentially creating regulatory gaps. Supporters, however, argue that sanctions and compliance screenings will still apply to all U.S. companies, and the transparency and traceability of blockchain technology offer even better visibility for regulatory oversight compared to traditional finance.

There are also concerns that the bill may weaken financial safeguards and open up regulatory loopholes, with some companies possibly claiming to be decentralized to bypass regulation. Additionally, some critics worry about former President Trump's involvement in the crypto space, fearing potential conflicts of interest that could disrupt the legislative process. However, supporters emphasize that the regulation will depend on the actual operations of platforms, not their labels.

3. Potential Impact on the Crypto Industry

Currently, the CLARITY Act has been submitted to the House for a full vote. Given the results from the two committees, the bill is likely to pass in the House. The overall impact on the crypto industry is seen as positive:

· Clarifying SEC and CFTC Responsibilities

One of the key innovations of the CLARITY Act is the shift from focusing on whether "cryptocurrencies are securities" to examining the "decentralization" of a project. The level of decentralization will ultimately determine whether a token is classified as an "investment contract asset" or a "digital commodity" and which agency—SEC or CFTC—will regulate it. Mixed-assets that exhibit characteristics of both securities and commodities will be coordinated between the two agencies. As digital assets become more decentralized, the regulatory responsibility will shift from the SEC to the CFTC. Thus, the bill clearly defines the jurisdiction of the SEC and CFTC, helping fill regulatory gaps in existing laws.

· Providing Regulatory Clarity and Certainty

The bill requires digital asset companies to comply with disclosure, conflict-of-interest avoidance, and comprehensive registration requirements. Digital asset developers will have clear pathways to raise funds under SEC jurisdiction and will be required to provide accurate and relevant disclosures. Transactions will be conducted through CFTC-regulated intermediaries and exchanges, offering a clear route for compliant digital trading.

· Encouraging Traditional Financial Institutions to Enter the Crypto Market

The bill provides institutional support for banks and traditional exchanges to participate in the crypto market. For example, the bill grants banks the status of qualified custodians for digital assets and prohibits federal regulators from forcing crypto assets held by clients onto banks' balance sheets unless necessary to address operational risks. This means banks can hold crypto without bearing balance sheet responsibility for it. The bill also allows registered securities exchanges or alternative trading systems (ATS) to apply for temporary registration as "digital commodity exchanges," enabling traditional exchanges to offer both securities and digital commodity trading under a unified framework.

· Supporting Decentralized Innovation and Market Integration

The CLARITY Act clearly recognizes and protects decentralized financial protocols, acknowledging that truly decentralized operations differ from traditional financial entities. At the same time, the bill retains anti-fraud and anti-manipulation enforcement powers to maintain a balance between innovation and user protection. This is likely to support the growth of the DeFi ecosystem and its integration with traditional financial systems. Additionally, the creation of a Financial Technology and Innovation Strategy Center and LabCFTC will guide the development and enhancement of Web3 infrastructure in the U.S., further promoting compliance in the crypto industry.

Persistent regulatory ambiguity has pushed many innovative U.S. companies to migrate to overseas jurisdictions. This bill is expected to stabilize industry expectations and restore confidence in the U.S. crypto market. The CLARITY Act not only aims to provide regulatory clarity but also seeks to lay the foundation for integrating cryptocurrency into the broader financial system. For crypto firms planning to operate in the U.S., this is both a challenge and a significant opportunity.

Reference

1.https://www.jinse.cn/lives/460376.html

2.https://www.jinse.cn/lives/460832.html

3.https://www.metaera.hk/contents/221042

4.https://notabene.id/post/clarity-act-introduced?utm_source=chatgpt.com#tradfi-players-can-get-in-the-game

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