Analysis of the U.S. "Digital Asset Market Clarity Act" and Its Impact

I. Overview of Legislation and Core Content

In 2025, the U.S. House of Representatives advanced the "CLARITY Act," also known as the Digital Asset Market Clarification Act, by an overwhelming majority, and the bill is currently under review in the Senate. If passed, it will mark an important milestone in the regulation of digital assets in the United States.

The CLARITY Act aims to establish clear definitions and regulatory rules for digital assets, particularly delineating the regulatory authority of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Once the Act is passed, the CFTC will be responsible for regulating exchanges, brokerage operations, dealers, and projects that meet the "mature chain" standard. The SEC will then oversee securities-type assets and cryptocurrencies that possess investment contract characteristics. The CLARITY Act, together with the GENIUS Act, forms a comprehensive regulatory framework for digital assets, with the former focusing on blockchain infrastructure and asset classification, while the latter concentrates on regulatory standards for stablecoins.

| Category | Regulatory Authority | Core Definition | Key Regulatory Requirements | |------|----------|----------|--------------| | Product Category | CFTC | Decentralized, permissionless, native tokens without financial rights | CFTC regulates trading platforms, brokers, and dealers. Project parties must meet the "mature chain" standards and report architecture certification | | Securities | SEC | Tokens with the nature of investment contracts or relying on the issuer for profit | Issuers and platforms must comply with the Securities Act, register as a broker/dealer, and disclose financial and fundraising information | | Payment Stablecoin | CFTC + SEC | Tokens pegged to fiat currency, with 1:1 reserves and used for payments | CFTC is mainly responsible for liquidity regulation, while SEC is responsible for anti-fraud; must comply with the relevant requirements of the "GENIUS Act" |

The core content includes:

1. Establish the definition of "digital goods"

   Classify the realized decentralized native cryptocurrency assets running on open blockchains as "digital goods," regulated by the CFTC.

2. Mature Blockchain System Recognition Mechanism

Introduce the "mature chain" standard, allowing specific projects to convert their tokens from "securities" to "commodities" after meeting conditions such as decentralization and governance decontrol.

3. DeFi Project Compliance Exemption Clause

Exempt DeFi protocols that do not involve asset custody and have no centralized intermediary structure from registration obligations.

4. Information Disclosure and Insider Trading Restrictions

Platforms operating digital asset trading markets must register with the CFTC as a "digital commodity exchange" and comply with stringent regulatory requirements.

5. Legalization of Traditional Institutions' Participation

Provide legal basis for traditional financial institutions such as banks and brokerages to offer custody and trading services for digital assets.

2. Impact on the Cryptocurrency Market

1. The regulatory transparency of crypto assets has improved, enhancing market confidence.

The CLARITY Act provides a clear compliance pathway for the cryptocurrency industry, ending long-standing regulatory uncertainty. This will help prevent fraud and abuse, enhance consumer confidence, and attract more institutional funds into the market. For institutions, compliance can be achieved, avoiding risks similar to those previously faced in SEC lawsuits. For consumers, the Act requires cryptocurrency issuers to disclose relevant information and restrict insider trading, thereby protecting consumer rights.

2. The trend of the U.S. cryptocurrency asset regulatory system towards "de-SEC-ification"

The bill passes structural allocation, building a new regulatory framework for most fully decentralized digital assets, freeing them from the need to comply with the SEC's regulatory system.

3. Traditional exchanges can obtain digital asset exchange licenses.

The bill allows traditional securities exchanges to apply for a "Digital Commodity Exchange" license, which means that in the future, it may be possible to provide stock and digital asset trading services on the same platform, offering a compliant and trustworthy entry point for traditional financial capital.

3. Impact on DeFi Projects

1. Clarify the exemption mechanism to protect protocol developers.

As long as DeFi projects do not engage in intermediary activities, their developers and operators do not need to register with the SEC or CFTC. Writing code, running nodes, or providing a front-end interface is generally not considered as providing financial services.

2. Introduce self-custody rights to protect the property rights of DeFi users

The bill guarantees users the right to self-manage digital assets, confirming that users can freely conduct peer-to-peer transactions through non-custodial wallets and legally enjoy control over their funds.

3. Impact on Representative DeFi Projects

Most DeFi projects are expected to obtain registration and intermediary exemption qualifications, but the legal status of official tokens remains uncertain. Project parties need to continuously promote the transparency of governance structures and strengthen community-led governance mechanisms to enhance the compliance of tokens.

4. Future Development

As of July 23, 2025, the CLARITY Act has entered the review stage in the U.S. Senate. The current focus of contention is whether the Senate version can retain the key provisions regarding DeFi and digital asset classification included in the version passed by the House of Representatives.

From an overall trend perspective, the CLARITY Act is expected to promote the establishment of a clearer and more tiered regulatory framework for digital assets in the United States. This framework will provide industry participants with clear compliance pathways, reduce legal uncertainties, stimulate compliance innovation, and attract institutional funds to enter the market.

The linkage between the "CLARITY Act" and the "GENIUS Act" lays a dual-pillar foundation for the compliance system of the U.S. cryptocurrency market. Together, they construct a complete compliance closed loop of "exemption first, transformation later, and final classification." Once the "CLARITY Act" is officially passed and signed into law, it will mark the entry of the U.S. digital asset legislative system into the stage of comprehensive implementation, significantly enhancing the legitimacy and strategic position of digital assets within the mainstream financial system of the United States.