What does Preamble of Digital Asset Market Clarity Act of 2025 do?

This section introduces a bill to regulate the offer and sale of digital commodities. The bill proposes amendments to the Federal Reserve Act. It aims to prohibit Federal Reserve banks from offering certain products or services directly to individuals. The bill seeks to prohibit the use of central bank digital currency for monetary policy.

What does DEFINITIONS UNDER THE SECURITIES ACT OF 1933. of Digital Asset Market Clarity Act of 2025 do?

This section amends the Securities Act of 1933 by adding several new definitions related to blockchain technology and digital assets. The definitions include 'blockchain,' 'blockchain application,' 'blockchain protocol,' and 'blockchain system,' which describe various components of blockchain technology. A 'decentralized governance system' is defined as a transparent, rules-based system for consensus-building within a blockchain system, not under the control of any single entity. The term 'digital asset' is defined as any digital representation of value recorded on a cryptographically-secured distributed ledger. The definition of 'digital commodity' references the Commodity Exchange Act. The section also defines 'digital commodity affiliated person,' 'digital commodity issuer,' and 'digital commodity related person,' outlining relationships and roles within the digital commodity ecosystem. An 'end user distribution' is defined as a distribution of a digital commodity that doesn't involve a significant exchange of value and is distributed broadly based on certain conditions. A 'mature blockchain system' is one not controlled by any single entity.

What does DEFINITIONS UNDER THE SECURITIES EXCHANGE ACT OF 1934. of Digital Asset Market Clarity Act of 2025 do?

This section amends Section 3(a) of the Securities Exchange Act of 1934. It redesignates the existing paragraph (80) regarding funding portals as paragraph (81). It adds new definitions to the Securities Exchange Act of 1934, including 'Bank Secrecy Act'. The 'Bank Secrecy Act' is defined as referencing specific sections of the Federal Deposit Insurance Act, Public Law 91-508, and Title 31 of the United States Code. It also adds definitions related to digital commodities, referencing sections of the Securities Act of 1933 and the Commodity Exchange Act. Terms like 'blockchain system,' 'digital asset,' and 'digital commodity' are given meaning under the referenced acts.

What does DEFINITIONS UNDER THE COMMODITY EXCHANGE ACT. of Digital Asset Market Clarity Act of 2025 do?

This section amends the Commodity Exchange Act to include definitions related to digital commodities. It defines terms such as 'digital commodity', 'digital commodity broker', 'digital commodity dealer', and 'decentralized finance trading protocol'. The section also excludes certain activities from the definition of 'trading in commodity interests' for digital commodities. Conforming amendments are made to other provisions of law to reflect the changes in this section. The amendments aim to clarify the regulatory framework for digital commodities.

What does DEFINITIONS UNDER THIS ACT. of Digital Asset Market Clarity Act of 2025 do?

This section defines terms used throughout the Act. Several terms are defined by referencing existing definitions in the Commodity Exchange Act, specifically section 1a. Other terms are defined by referencing section 2(a) of the Securities Act of 1933. Additionally, terms are defined by referencing section 3(a) of the Securities Exchange Act of 1934.

What does RULEMAKINGS. of Digital Asset Market Clarity Act of 2025 do?

This section directs the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) to jointly issue rules defining specific terms related to blockchain technology, digital commodities, and decentralized finance. The SEC and CFTC are required to jointly issue rules applicable to mixed digital asset transactions. Individuals retain the right to maintain hardware or software wallets for lawful custody of digital assets and engage in direct peer-to-peer transactions, provided certain conditions are met, including that the other party is not a financial institution and the transactions do not involve blocked property. The SEC and CFTC must jointly issue rules, procedures, or guidance regarding the delisting of assets for trading within 180 days of the Act's enactment. The CFTC and SEC are tasked with developing rules for portfolio margining determinations, outlining a process for registered entities to seek joint orders related to margin, customer protection, and other requirements. The Board of Governors of the Federal Reserve System, the Comptroller of the Currency, and the FDIC are directed to develop capital requirements for financial institutions addressing netting agreements in the event of a counterparty's default.

What does EXPEDITED REGISTRATION FOR DIGITAL COMMODITY EXCHANGES, of Digital Asset Market Clarity Act of 2025 do?

This section establishes an expedited registration process for digital commodity exchanges, brokers, and dealers with the Commodity Futures Trading Commission (CFTC). The CFTC must adopt a process for expedited registration within 180 days of the Act's enactment. Registered entities will initially be in 'provisional status' until 270 days after the final effective date of related rulemakings under sections 4u and 5i of the Commodity Exchange Act. During provisional status, entities must pay fees and adhere to requirements of the Commodity Exchange Act. Entities in provisional status may continue offering digital assets until the joint rulemaking on definitions under section 105(a) is effective, unless required to delist assets. The CFTC has the authority to exempt entities in provisional status from certain requirements to promote innovation, fair competition, or customer protection. Beginning 30 days after enactment, entities acting as digital commodity exchanges, brokers, or dealers must disclose to customers that they are not yet registered or regulated by the CFTC.

What does COMMODITY EXCHANGE ACT AND SECURITIES LAWS SAVINGS of Digital Asset Market Clarity Act of 2025 do?

This section clarifies that the Act does not affect agreements, contracts, or transactions subject to the Commodity Exchange Act (CEA), including contracts of sale of commodities for future delivery, swaps, security futures products, and certain leverage transactions. Similarly, the Act does not affect agreements, contracts, or transactions subject to securities laws, such as security-based swaps, security futures products, and options based on the value of a security. The Act also states that its provisions do not affect the activities of individuals related to these agreements, contracts, or transactions. The Act explicitly prohibits the registration as a digital commodity exchange, broker, or dealer from authorizing activities involving transactions already regulated under the CEA. Definitions within this section will follow those established in the Commodity Exchange Act and its regulations.

What does ADMINISTRATIVE REQUIREMENTS. of Digital Asset Market Clarity Act of 2025 do?

This section amends Section 4c(a) of the Commodity Exchange Act. The amendments involve modifications to paragraphs (3) and (4) of Section 4c(a). The amendments add 'a contract of sale of a digital commodity' to subparagraphs within paragraphs (3) and (4). The amendments also modify clauses within subparagraphs by striking 'or' and inserting '; or' to accommodate the addition of 'a contract of sale of a digital commodity'.

What does TREATMENT OF CERTAIN NON-CONTROLLING BLOCKCHAIN DEVELOPERS. of Digital Asset Market Clarity Act of 2025 do?

This section aims to prevent certain blockchain developers and service providers from being classified as money transmitters. Specifically, it excludes from money transmitter regulation those who create or publish blockchain software, provide hardware/software for customer custody of digital assets, or provide infrastructure support. The exclusion applies only when activities fall within the defined scope and does not affect classifications based on conduct outside that scope, including anti-money laundering or Bank Secrecy Act regulations. The section clarifies that it does not affect intellectual property laws and allows states to enforce laws consistent with this section, while prohibiting actions based on inconsistent state or local laws. A 'blockchain developer' is defined as someone who creates or publishes software for blockchains or provides maintenance. A 'blockchain service' is defined as a system providing access to a blockchain network, including enabling users to manage digital assets. A 'non-controlling blockchain developer or provider' lacks the legal right to unilaterally control transactions involving user digital assets.

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Digital Asset Market Clarity Act of 2025

Last updated: 9/18/2025 · Introduced: 5/29/2025

Author: J. Hill (R-AR)

TL;DR (AI)

The bill establishes requirements for the offer and sale of digital commodities, including expedited registration for digital commodity exchanges, brokers, and dealers.
It prohibits Federal Reserve banks from offering certain products or services directly to individuals and from issuing a central bank digital currency, either directly or indirectly.
The bill also provides for the regulation of digital commodity brokers and dealers, and requires studies on expanding financial literacy amongst digital commodity holders and on certain centralized intermediaries.

119th Congresspassed houseOfficial page

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