U.S. House Advances CLARITY Act to Regulate Crypto Markets

The CLARITY Act, introduced by House Committee Chair French Hill, passed the House on July 17, 2025, and is now under Senate review.

If enacted, the Act grants the CFTC jurisdiction over digital commodities, potentially impacting regulatory frameworks and market dynamics.

U.S. House Overwhelmingly Passes CLARITY Act with 294-134 Vote

French Hill, Chairman of the House Committee on Financial Services, successfully introduced the Digital Asset Market Clarity Act, known as the CLARITY Act of 2025. The act assigns the Commodity Futures Trading Commission (CFTC) responsibility for regulating digital commodity spot markets, such as Bitcoin and Ethereum. Concurrently, the Securities and Exchange Commission (SEC) will retain oversight of assets termed investment contracts, ensuring compliance across exchanges and brokers.

If enacted, the CLARITY Act could fundamentally alter the regulatory landscape for cryptocurrencies, introducing broader exemptions for mature blockchains. These changes may increase confidence among institutional investors, enhancing liquidity and exchange compliance. Notably, stablecoins will be treated as commodities when traded on registered platforms.

“The ‘CLARITY Act’ is like the ‘Punxsutawney Phil’ of this crypto winter. If it only peeks out and fails to pass Congress, then the ‘winter’ may continue; but if it successfully passes and is signed into law, the crypto market is likely to see a new all-time high.” — Matt Hougan, Chief Investment Officer, Bitwise

Bitcoin Trades at $91,328 Amid Regulatory Changes

Did you know? The CLARITY Act is regarded as a natural successor to the FIT21 bill passed in 2024, which aimed to delineate crypto market regulations but stalled in the Senate. This historical context suggests the CLARITY Act might face similar challenges.

According to CoinMarketCap data, Bitcoin (BTC) trades at $91,328.12 with a market cap of $1.82 trillion and a dominance of 58.65%. The 24-hour trading volume showed a 47.87% increase, reaching $36.05 billion. Price movements indicate a decline of 0.47% over 24 hours, a 2.74% drop over seven days, and an 18.47% decrease over 90 days.

Expert analysis by Coincu suggests that successful implementation of the CLARITY Act could lead to enhanced transparency and increased market participation. Analysts forecast regulatory adjustments, such as CFTC oversight, might stabilize digital markets and attract institutional traders. These shifts are anticipated to encourage technological advancements and bolster market confidence.