The U.S. House of Representatives has passed the Digital Asset Market Clarity Act, a significant step toward regulating the cryptocurrency industry, following a tense internal battle within the Republican Party.
The bill passed with a strong 294-134 vote, gaining support from all Republicans and 78 Democrats.
The Digital Asset Market Clarity Act, also known as the Clarity Act, aims to establish clear boundaries for cryptocurrency regulation. It outlines when a digital asset should be treated as a security under the Securities and Exchange Commission (SEC) or as a commodity under the Commodity Futures Trading Commission (CFTC).
For years, the crypto industry has asked for guidance to avoid regulatory uncertainty. The SEC, under former Chair Gary Gensler, was often criticized for pursuing enforcement actions without offering clear rules. This legislation intends to solve that problem and give businesses a clearer legal framework.
Political Drama Delayed Progress
The bill’s progress was nearly derailed earlier in the week by disagreements within the Republican Party. A group of hardline members blocked a key procedural vote, forcing GOP leaders into last-minute negotiations. Former President Donald Trump even got involved, proposing that anti-CBDC (central bank digital currency) language be added to the bill to satisfy concerns.
Although that proposal caused further tensions, a compromise was eventually reached by adding the Anti-CBDC Surveillance State Act to the National Defense Authorization Act instead. This move helped break the deadlock and allowed the Clarity Act to move forward.
Senate Still to Weigh In
While the House passed a previous version of this bill last year, it stalled in the Senate. Now that the updated version has cleared the House again, the focus shifts to the Senate, which is preparing its own draft of crypto legislation.
Stablecoin Bill Also Advances
In addition to the Clarity Act, the House passed the GENIUS Act, which creates a regulatory structure for stablecoins used in digital payments. This bill had already passed the Senate and now awaits the President’s signature.
With both bills moving ahead, Congress is showing new momentum toward building a clearer legal environment for digital assets in the U.S.