House Financial Services Committee Chairman French Hill recently introduced the Digital Asset Market Clarity Act, a comprehensive bipartisan measure that aims to bring much-needed clarity to the digital asset ecosystem. This 249-page bill defines terms such as “digital commodity,” “investment-contract asset,” “mature blockchain system,” and “permitted payment stablecoin,” and seeks to streamline regulations governing cryptocurrencies.
The proposed framework includes provisions for primary token offerings, offering a four-year safe harbor for projects that reach a mature status and raise under $75 million in a 12-month period. Secondary trading of digital commodities by parties other than the issuer would fall outside securities jurisdiction, reducing uncertainty for exchange listings. The bill also proposes moving spot trading, brokerage, and custody of digital commodities under the exclusive supervision of the Commodity Futures Trading Commission (CFTC), while maintaining dual oversight for hybrid products that combine securities.
At the Securities and Exchange Commission (SEC), alternative trading systems and broker-dealers handling only digital commodities would file notices rather than obtaining new licenses. Crypto venues would need to complete provisional CFTC registration within 180 days and join a self-regulatory organization. The bill also includes provisions for bank-regulated payment stablecoins and brings crypto intermediaries under Bank Secrecy Act obligations.
The Digital Asset Market Clarity Act has received bipartisan support, with Agriculture Committee Chairman G.T. Thompson stating that it provides the certainty entrepreneurs and markets need. House Majority Whip Tom Emmer praised the legislation for keeping the next iteration of the internet in US hands, while digital-asset subcommittee chairs Bryan Steil and Dusty Johnson emphasized that the act democratizes access and provides markets with the clarity needed to thrive.
Ohio Republican Warren Davidson highlighted the bill’s safeguards for self-custody and transaction freedom, noting his efforts to pursue statutory clarity since 2018. Democratic co-sponsors Angie Craig, Ritchie Torres, and Don Davis framed the bill as a consumer protection and inclusion policy, emphasizing the importance of setting clear rules for businesses and closing regulatory gaps.
The bill’s introduction follows a May 5 discussion draft and a bipartisan roundtable, where key concepts were discussed with industry and academic experts. The House Financial Services and Agriculture committees plan joint markups before sending the measure to the floor for consideration. House leaders will schedule committee votes, with the potential for the bill to advance to the full chamber for further discussion.
Overall, the Digital Asset Market Clarity Act represents a significant step towards providing regulatory clarity for the digital asset ecosystem and ensuring the US remains a global leader in the digital assets space.