HR3633119th CongressWALLET

Digital Asset Market Clarity Act of 2025

Sponsored By: Representative Hill (AR)

Passed House

Summary

Would create a comprehensive federal framework to regulate digital assets, stablecoins, exchanges, and custody across the SEC and CFTC. It would set rules for issuer disclosures and a maturity test for blockchains, register digital-commodity exchanges and brokers, require qualified custodians, protect individual self-custody, and prohibit a retail Federal Reserve CBDC.

Bill Overview

Analyzed Economic Effects

24 provisions identified: 12 benefits, 0 costs, 12 mixed.

Safer custody of your digital coins

If enacted, exchanges would have to keep your funds and coins separate from the firm’s money. Customer assets would be treated as your property in bankruptcy, with only narrow exceptions and limited, approved investments. The bill would also create “qualified digital asset custodians” with rules on supervision, capital, audits, AML, cybersecurity, and business continuity. The Commission could set details and pause custodian requirements in special cases.

Ban on a Federal digital dollar

If enacted, the Federal Reserve would be barred from offering accounts to individuals or issuing a central bank digital currency (CBDC) for the public. The Fed could not test, study, develop, or use a CBDC to run monetary policy. An exception remains for private, dollar‑denominated, open and permissionless systems that keep cash‑like privacy protections.

Definitions and DeFi infrastructure safe harbor

The bill would set detailed legal definitions for digital assets, affiliated and related persons, and mature blockchain systems. It would also say that many DeFi and blockchain infrastructure tasks—like running nodes, relaying transactions, building interfaces, or self‑custody software—do not by themselves trigger regulation under this Act or the Exchange Act. Anti‑fraud and anti‑manipulation powers would still apply. Key terms would be harmonized across laws for consistency.

Stablecoins and tokens not securities

If enacted, digital commodities and permitted payment stablecoins would not be treated as securities. Anti-fraud and anti-manipulation rules would still apply when trades go through brokers or exchanges. The CFTC would oversee spot digital-asset trades on registered platforms, with limits for banking custody and securities sales. SIPA would not treat permitted payment stablecoins as cash. For stablecoins on registered venues, agency rules would cover trading conduct, not how issuers run their coins.

Clear disclosures and education for crypto buyers

Brokers and dealers would need to give you written warnings before holding your digital assets, explaining how they could be treated in bankruptcy and how that differs from cash and securities. Registered platforms would have to provide plain‑language education on how blockchain works, common risks, reporting duties, and how to spot fraud. Exchanges would need certifications or public disclosures before listing a token, with most reviews done in 20 business days (1 business day if previously certified). The SEC would set simple, standardized, plain‑English disclosures about code, supply and governance, verification steps, trading volume, and volatility. Brokers and dealers would also face fair‑communication and anti‑fraud conduct rules toward retail customers.

Stronger rules for your crypto custody

If enacted, firms that hold your digital assets would not be allowed to use them as their own. 'Use' would include staking, validation, or governance unless you direct it. Exchanges could use your tokens for blockchain services only if you give clear written permission and they meet set conditions. The ban would start right away; the consent rule would follow the bill’s default start date.

Exchanges can’t trade against you

If enacted, digital‑asset exchanges and their affiliates would be barred from proprietary trading on their own platforms. Narrow exceptions would allow customer‑directed, risk‑management, operational, or functional blockchain‑use trades, with notice to the Commission. The Commission could add conditions to protect customers and market integrity.

More venues to trade digital assets

If enacted, the SEC could not block a trading platform from using certain exchange‑registration exemptions just because it lists digital commodities or payment stablecoins. An ATS mainly trading those assets would not be treated as a national exchange facility. This could open more compliant places to trade.

Simpler token offering up to $50 million

Issuers could raise up to $50,000,000 in 12 months (inflation‑adjusted) without full registration if they follow new disclosure and reporting rules. No buyer could own more than 10% after a sale. Projects would have up to 4 years to reach a “mature blockchain system,” with semiannual reports until maturity. The SEC must write rules within 360 days and extra failure‑to‑mature rules within 270 days. Intermediaries must register as brokers or dealers and join a national securities association.

Tighter rules for payment stablecoins

If enacted, permitted payment stablecoin issuers would need monthly examinations by a registered accounting firm and monthly CEO/CFO certifications, with criminal penalties for knowing false statements. They would need internal controls and an annual independent attestation. Non‑financial companies could not control nonbank qualified stablecoin issuers, and the Federal Reserve Board must clarify what counts as financial activities within 180 days of a related act.

When these crypto rules would start

If enacted, most changes would start 360 days after the bill is signed. Rules that need regulations would start later: the later of 360 days or 60 days after the final rule is published. Some items use other deadlines, like 180 or 270 days.

AML rules for crypto firms

Digital‑asset brokers, dealers, and certain exchanges would be added to Bank Secrecy Act rules. Treasury (FinCEN), with the CFTC, would tailor AML requirements to firm size and complexity. Firms would need programs for risk assessment, policies and controls, a compliance officer, training, independent audits, records, suspicious activity reporting (including blockchain analytics), customer identification, and OFAC sanctions compliance.

Certify mature blockchains; limit insider sales

Projects, exchanges, or other eligible filers could certify a blockchain as a “mature blockchain system” if no one controls it. The Commission could rebut within 60 days or extend review once (with a public comment period). Separately, control persons of a certified mature system would face sale limits and public‑disclosure rules, and may need to use a broker. These steps aim to add clarity and reduce manipulation risk.

Clearer line between tokens and securities

If enacted, some blockchain tokens would not count as “investment contracts,” and many secondary sales and end‑user distributions would not be treated like securities offerings. The bill would treat digital commodities as “covered securities,” limiting duplicative state rules, and let the SEC grant exemptions by order. These moves could lower compliance in some areas while changing which regulators lead.

Crypto exchanges and brokers must register

If enacted, acting as a digital‑asset exchange, broker, or dealer without CFTC registration would be unlawful. Firms would face daily trade‑record and communication retention rules, and exchanges would need emergency powers to move or close positions or pause trading when needed. The CFTC must create an expedited registration in 180 days; some firms could operate in provisional status for a limited time. Provisional registrants would pay initial and annual fees, with a late penalty of 5% of the fee for each full 30‑day period late; schedules must be published in advance and small or medium filers can get reductions.

Modern records and custody accounting rules

If enacted, regulated firms could use blockchain records to meet books‑and‑records rules, subject to SEC standards issued within 180 days. Agencies could not force firms to book customer‑custodied assets as liabilities or hold capital against those assets or reserves, except as needed for operational risk. This could lower costs while keeping safety checks.

More capital and margin rules for firms

If enacted, the Commission would set minimum capital rules for digital commodity brokers and dealers. Exchanges would need funds equal to one year of operating costs plus customer obligations. The Commission would also set rules for margin loans and rehypothecation for digital assets, including disclosures, capital, and supervision. These changes aim to cut risk but could raise firm costs.

More contracts treated as digital commodities

Some contracts of sale—when offered or traded on registered entities—would be treated as digital commodities and brought under CFTC tools and protections. The Commission could set rules on disclosure, recordkeeping, capital, conduct, and segregation to protect customers and market integrity. One part would take effect 270 days after enactment; another would take effect upon enactment.

New dual registrations for crypto markets

If enacted, securities brokers and dealers could also register with the CFTC as digital-commodity brokers or dealers. Stock exchanges and some alternative trading systems could register as digital-commodity exchanges. Applicants would have to give the SEC notice in the form it requires. Most changes would start about 360 days after enactment.

Stronger conflict rules for dual registrants

If enacted, firms registered with both the SEC and CFTC would need written policies to find and fix conflicts of interest. The CFTC would set conflict‑mitigation rules, including for vertically integrated firms. The SEC would create exemptions to avoid duplicative rules while protecting investors, and the agencies would coordinate supervision via a memorandum of understanding.

Right to self‑custody and peer transfers

If enacted, you would have the right to hold digital assets in your own wallet for personal use. You could send assets directly to another person if the counterparty is not a financial institution and the transfer does not involve blocked or sanctioned property. This right would not apply when you act as a custodian or fiduciary for others. Agencies would still enforce anti‑money‑laundering and sanctions laws.

Ban on officials issuing tokens

If enacted, existing ethics laws would be read to bar Members of Congress and senior executive officials from issuing digital commodities while in office. The bill also clarifies how certain federal ethics rules apply to covered employees. This aims to reduce conflicts of interest.

SEC and CFTC fintech offices

If enacted, the CFTC would codify LabCFTC and the SEC would launch a Strategic Hub for Innovation and Financial Technology (FinHub). These offices would engage with innovators, advise on rules, and report annually by October 31 after 2025. This aims to support clearer, up‑to‑date oversight.

Small cut to Federal Reserve surplus

If enacted, a Federal Reserve statutory surplus amount would drop by $15 million. The change would take effect on September 30, 2035. This is an accounting change and would not directly raise household taxes or fees.

Sponsors & CoSponsors

Sponsor

Hill (AR)

AR • R

Cosponsors

  • Thompson (PA)

    PA • R

    Sponsored 5/29/2025

  • Craig

    MN • D

    Sponsored 5/29/2025

  • Emmer

    MN • R

    Sponsored 5/29/2025

  • Johnson (SD)

    SD • R

    Sponsored 5/29/2025

  • Davis (NC)

    NC • D

    Sponsored 5/29/2025

  • Steil

    WI • R

    Sponsored 5/29/2025

  • Torres (NY)

    NY • D

    Sponsored 5/29/2025

  • Davidson

    OH • R

    Sponsored 5/29/2025

  • Gottheimer

    NJ • D

    Sponsored 6/2/2025

  • Huizenga

    MI • R

    Sponsored 6/5/2025

  • Nunn (IA)

    IA • R

    Sponsored 6/20/2025

  • Lawler

    NY • R

    Sponsored 6/20/2025

  • Meuser

    PA • R

    Sponsored 6/20/2025

  • Carter (GA)

    GA • R

    Sponsored 6/20/2025

  • Moore (WV)

    WV • R

    Sponsored 6/20/2025

  • Begich

    AK • R

    Sponsored 6/20/2025

  • McDonald Rivet

    MI • D

    Sponsored 6/20/2025

  • Thanedar

    MI • D

    Sponsored 6/20/2025

  • Messmer

    IN • R

    Sponsored 6/20/2025

  • Bresnahan

    PA • R

    Sponsored 6/20/2025

  • Stevens

    MI • D

    Sponsored 6/23/2025

Roll Call Votes

All Roll Calls

Yes: 294 • No: 134

house vote • 7/17/2025

On Passage

Yes: 294 • No: 134

View on Congress.gov

Related Bills

Back to Legislation

Take It Personal

Get Your Personalized Policy View

Create a free account to save research, track policy impacts, and unlock your personalized versions of these pages.

Already have an account? Sign in