The CLARITY Act (formally the Digital Asset Market Clarity Act, H.R. 3633) is a U.S. bill that would create a federal rulebook for crypto markets. It defines when a digital asset is a commodity rather than a security, splits oversight between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), and requires crypto exchanges, brokers and dealers to register with federal regulators.
The House passed the bill 294–134 in July 2025. On September 15, 2026, it stalled in the Senate when a procedural vote to begin debate failed 49–50, short of the 60 votes needed. It is not law.
This guide explains what the CLARITY Act would do, why it has been so hard to pass, and what it means for exchanges, institutions and Web3 projects in the meantime.
Why the CLARITY Act Matters
For most of crypto's history, U.S. oversight has been set by enforcement actions and agency guidance rather than by statute. The core question — is this token a security or a commodity? — has been answered case by case, often in court. That left exchanges, token issuers and the institutions that serve them guessing which regulator they answer to.
The CLARITY Act is Congress's attempt to settle that question in law. It is often called a "market structure" bill because it governs how crypto markets themselves are organized: who can list what, who supervises the venues, and what protections customers get.
It is the second half of a two-part federal framework. The first half, the GENIUS Act, became law in July 2025 and covers payment stablecoins. As of today, the GENIUS Act is the only part of the U.S. crypto framework written into statute. Everything else rests on agency rules that a future administration could change.
What the CLARITY Act Does: Key Provisions
The provisions below describe the House-passed text. The Senate Banking Committee advanced its own substitute version in May 2026, so the final law, if one passes, may differ.
- Divides oversight between the SEC and the CFTC. The CFTC would generally oversee digital commodities and the exchanges, brokers and dealers that trade them. The SEC would keep authority over securities and over the process that certifies a blockchain as mature. Several key terms would be defined jointly by both agencies through rulemaking.
- Creates a legal category for "digital commodities." To trade on a registered exchange, a digital commodity generally must be tied to a mature blockchain or supported by required issuer disclosures.
- Sets up a "mature blockchain" test. Specified parties could certify to the SEC that a blockchain is mature, meaning it is not controlled by any single person or group. The SEC would have 60 days to rebut or stay the certification. This is the bill's path for a token to move from securities treatment to commodity treatment.
- Requires federal registration for intermediaries. Digital commodity exchanges, brokers and dealers would register and meet conduct standards, recordkeeping and daily trade reporting duties, and customer risk disclosure requirements.
- Brings intermediaries under AML rules. Registered exchanges, brokers and dealers would be subject to Bank Secrecy Act requirements, including AML programs, suspicious activity reporting, customer identification and sanctions compliance.
- Protects customer assets. Brokers and dealers would segregate and separately account for customer property and hold covered assets with qualified digital asset custodians.
- Protects self-custody and developers. Individuals would keep the right to hold assets in their own hardware or software wallets and transact peer-to-peer. Developers who publish software or provide infrastructure without controlling user funds would not be treated as money transmitters for that activity alone.
Where the CLARITY Act Stands Now
The bill is stuck on the Senate calendar after failing a procedural vote on September 15, 2026. That vote decided only whether the Senate would begin debate, so the bill's substance was never voted on.
| Date | Milestone |
|---|---|
| Sep 15, 2026 | Senate cloture vote on the motion to proceed fails 49–50; 60 votes needed |
| Aug 2026 | Majority Leader John Thune files cloture before the August recess, setting the September vote |
| Jun 1, 2026 | Bill placed on the Senate Legislative Calendar (No. 423) with the Banking Committee's substitute |
| May 14, 2026 | Senate Banking Committee advances the bill 15–9 |
| Jul 18, 2025 | GENIUS Act signed into law, covering payment stablecoins |
| Jul 17, 2025 | House passes H.R. 3633, 294–134, with 78 Democrats in support |
| May 29, 2025 | Rep. French Hill introduces H.R. 3633 |
Why It Stalled
The SEC–CFTC split was not what sank the bill. Two other disputes did:
- Ethics. Democrats sought stronger limits on senior federal officials, including the president and his family, profiting from crypto businesses. Republicans argued they had already made substantial concessions.
- Stablecoin rewards. Banking groups, including the American Bankers Association, argued that rewards paid on stablecoin balances could pull deposits away from community banks. Some Republicans, including Sen. Josh Hawley, made this a condition of their support.
No Democrat voted to advance the bill, and four Republicans — Senator Susan Collins, Senator Josh Hawley, Senator Jerry Moran and Senator Thom Thilllis — voted no. Senator Thillis originally voted “Yay” but changed this vote to “No” later. This was done to preserve the “motion to reconsider” option, to re-introduce the bill for cloture later.
What Happens Next
The bill remains on the Senate calendar, and leadership can bring it back for another cloture vote — thanks to Senator Thillis changed vote — if supporters find the votes. With Congress out until after the November 3 midterms, the realistic windows are:
- The lame-duck session after the election, where it will compete with spending bills and other unfinished business.
- The next Congress starting January 2027. If the bill does not pass before the 119th Congress ends, it must be reintroduced and move through committee again. This could mean another multi-year delay.
Meanwhile, regulators are not waiting. The SEC has proposed "Regulation Crypto Assets," including a safe harbor for tokens to exit security status, and the CFTC has sent a crypto market structure rule to the White House. These rules can move faster than legislation, but they can also be reversed by a future administration in a way a statute cannot.
What the CLARITY Act Means for Crypto Businesses
Whether the bill passes in the lame duck, in 2027 or in a different form, its direction is clear. The requirements it describes — registration, AML programs, customer asset protection, disclosures — are where U.S. regulation is heading and is in many ways similar to the rules proposed by the regulatory agencies in the absence of CLARITY. Businesses that wait for a final vote will be preparing on the regulator's timeline instead of their own.
- Exchanges, brokers and dealers should expect federal registration, segregated customer assets, qualified custody and Bank Secrecy Act obligations. Many of these controls take months to build and evidence.
- Token issuers and Web3 projects should prepare for disclosure requirements and, if they want commodity treatment, a credible case that their blockchain is not controlled by any single party.
- Banks and institutions entering digital assets should expect counterparties to be measured against these standards and should run their own due diligence to match.
- Developers and DeFi teams would gain protection for publishing non-custodial software, but only where they do not control user funds. Where that line falls in practice will be set by rulemaking.
Why Security Is the Common Thread
However the final text reads, every version of U.S. market structure law (and regulatory agency rules) asks the same thing of crypto businesses: prove that customer assets are safe and that the platform is resilient. Regulators can only certify what firms can demonstrate.
That makes security readiness the most durable form of compliance preparation. Controls that pass a security assessment today will still matter whichever agency ends up supervising them.
How CertiK Helps Firms Prepare
CertiK works with exchanges, custodians, token issuers and financial institutions to build the security and compliance foundations that U.S. and global regulators expect:
- Smart contract audits and formal verification to show that on-chain code behaves as disclosed.
- Penetration testing of exchange and custody infrastructure.
- Proof of reserves audits to evidence that customer assets are fully backed.
- SkyInsights for on-chain AML, transaction monitoring and wallet screening.
FAQs
What is the CLARITY Act in simple terms?
The CLARITY Act is a proposed U.S. law that sets rules for crypto markets. It decides when a digital asset is a commodity or a security, gives the CFTC and SEC separate oversight roles, and requires crypto exchanges, brokers and dealers to register and protect customer assets.
Has the CLARITY Act passed?
No. The House passed it 294–134 in July 2025, but on September 15, 2026, a Senate vote to begin debate failed 49–50, short of the 60 votes needed. The bill can return in the post-election lame-duck session or be reintroduced in the next Congress in 2027.
What is the difference between the CLARITY Act and the GENIUS Act?
The GENIUS Act, signed into law in July 2025, regulates payment stablecoins and their issuers. The CLARITY Act would regulate the broader crypto market, including how tokens are classified and how exchanges, brokers and dealers are supervised. Together they form the two halves of a federal crypto framework, but only the GENIUS Act is law.
Would the CLARITY Act put crypto under the SEC or the CFTC?
Both, depending on the asset. Digital commodities and the platforms that trade them would generally fall under the CFTC. Assets that are securities would stay with the SEC, which would also review certifications that a blockchain has become mature enough for its token to be treated as a commodity.
How should crypto businesses prepare for the CLARITY Act?
Build the controls the bill describes before it passes: segregated customer assets with qualified custody, AML and sanctions programs, clear risk disclosures, and independently tested security. These requirements appear in every version of the bill and in current agency rulemaking, so they are worth putting in place regardless of the bill's timing.
