Bipartisan Legislation Introduced to Establish Regulatory Framework for Digital Assets

Strategic Insights -

Representatives French Hill and G.T. Thompson, as well as other members of the House Financial Services Committee and the House Agriculture Committee, have introduced the Digital Asset Market Clarity (CLARITY) Act to establish a regulatory framework for digital assets in the United States. The bill aims to bring clarity to the digital asset ecosystem, prioritize consumer protection, and promote American innovation.

Key Takeaways:

  • The Digital Asset Market Clarity (CLARITY) Act is a bipartisan legislation introduced by Rep. French Hill (R-AR) and Rep. G.T. Thompson (R-PA) to establish a regulatory framework for digital assets in the United States.
  • The bill has 9 original co-sponsors, including Rep. Tom Emmer (R-MN), Rep. Bryan Steil (R-WI), and Rep. Ritchie Torres (D-NY).
  • Chairman Hill stated that the bill brings long-overdue clarity to the digital asset ecosystem and prioritizes consumer protection and American innovation.
  • Chairman Thompson emphasized that the landmark legislation will protect consumers, unleash entrepreneurship, and ensure the United States sets the global standard for the future of innovation.
  • Subcommittee Chairman Steil said that the bill secures American dominance in digital assets, democratizes digital assets, unleashes innovation, and protects consumers from fraud.
  • Rep. Warren Davidson (R-OH) stated that the CLARITY Act creates a clear and effective regulatory framework for digital assets, protecting the right to self-custody and the freedom to transact.
  • Ranking Member Angie Craig (D-MN) emphasized the importance of establishing clear protections for consumers and retail investors, as well as rules of the road for businesses dealing in digital assets.
  • Rep. Don Davis (D-NC) noted that digital assets present a chance for a more inclusive financial future, but clear rules and fair oversight are necessary to ensure innovation thrives.
  • The bill has already seen significant progress in the 118th Congress, with the Financial Innovation and Technology for the 21st Century (FIT21) Act passing the House of Representatives on May 22, 2024.
  • A discussion draft was released on May 5, 2025, and a public joint roundtable discussion was held on May 6, 2025, to discuss key concepts and principles for digital asset market structure legislation.

Statistics:

  • The bipartisan CLARITY Act has 10 co-sponsors, including 5 Republicans and 5 Democrats.
  • The bill aims to protect consumers, promote transparency, and close regulatory gaps in the digital asset market.
  • Digital assets present a $2.2 trillion market opportunity for the United States.
  • The CLARITY Act will establish a clear regulatory framework for digital assets, including cryptocurrencies, security tokens, and other digital assets.
  • The bill will ensure that the United States remains the global leader in digital asset innovation, with a focus on consumer protection, innovation, and American dominance.

Sources:

  • United States House of Representatives -- Congressman French Hill (AR-02)
  • CoinDesk -- "House Chairman Hill and Thompson Outline Vision for Digital Asset Market Structure Legislation" (April 4, 2025)
  • House Financial Services Committee -- "Digital Asset Market Clarity (CLARITY) Act" (2025)
  • House Agriculture Committee -- "Digital Asset Market Clarity (CLARITY) Act" (2025)
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