Digital Asset Market Clarity Act

Sponsor: J. French Hill (Republican-AR)May 29, 2025

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Cloture motion on the motion to proceed to the measure presented in Senate. (CR S4557)

New rules would clarify how digital currencies are regulated and block the government from creating a digital dollar.

This bill would create a clear system for regulating digital currencies, called "digital commodities," under the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). It would also prevent the Federal Reserve from creating a central bank digital currency, which is a digital version of the U.S. dollar. These changes aim to protect consumers and investors in the digital asset market while also safeguarding privacy in digital transactions.

What Would Change

Currently, the regulatory landscape for digital assets is often fragmented and uncertain, with ongoing debates about which assets are securities versus commodities and whether the Federal Reserve should create a digital dollar. This bill would establish clear definitions for "digital commodities" and assign their primary oversight to the CFTC, while explicitly banning the Federal Reserve from creating a central bank digital currency. This means more defined rules for digital asset businesses and a guarantee against a government-issued digital dollar.

Key Provisions

Defines "digital commodity" and clarifies that the Commodity Futures Trading Commission (CFTC) would regulate digital commodity spot markets, while the Securities and Exchange Commission (SEC) would oversee investment contracts involving them.
Requires digital commodity exchanges, brokers, and dealers to register with the CFTC and follow new rules for customer protection, financial resources, and preventing market manipulation.
Prevents the Federal Reserve from developing, testing, or issuing a central bank digital currency (a digital dollar) directly or indirectly, and from offering financial products or services directly to individuals.
Protects individuals' right to hold their own digital assets in hardware or software wallets and to engage in direct, peer-to-peer transactions for lawful purposes.
Requires companies that issue digital commodities to provide clear disclosures to the public about their blockchain systems and development plans.