CLARITY Act Tracker

Track the legislative progress of the CLARITY Act and understand its impact on digital asset regulation.

Read the full text in PolicyLens

Highlight any provision for a plain-English explanation. Search and cite any section.

White House August Recess Deadline

The White House has targeted the August 2026 congressional recess for the CLARITY Act to reach the President's desk. The Senate Banking Committee markup window is open now — Chairman Tim Scott has not yet announced a date. Three hurdles remain: stablecoin yield language, DeFi provisions, and Republican whip count. Sen. Lummis has warned that missing the late-April window could delay the bill until 2030.

Target: Presidential signature by August 2026

CLARITY Act

H.R. 3633

Senate Banking Committee — Passed 15-9, Advancing to Senate Floor

The CLARITY Act establishes a comprehensive framework for digital asset regulation in the United States. It grants the CFTC exclusive jurisdiction over digital commodity spot markets, maintains SEC authority over investment contract assets, and provides a pathway for tokens to transition from security to commodity status as networks become sufficiently decentralized. The White House has set a July 4, 2026 deadline for the bill to reach the President's desk.

Introduced: May 29, 2025

House Passed: July 17, 2025

Senate Ag Committee: January 29, 2026

Sponsors: Chairman French Hill (R-AR), Rep. Tom Emmer (R-MN), Rep. Dusty Johnson (R-SD)

Legislative Timeline

Bill introduced in House by Chairman French Hill

May 29, 2025

House Financial Services & Agriculture Committee markup (passed 32-19)

Jun 10, 2025

Passed House floor vote (294-134)

Jul 17, 2025

Senate Agriculture Committee advances companion bill (Digital Commodity Intermediaries Act)

Jan 29, 2026

SEC/CFTC joint taxonomy released (Release No. 33-11412)

Mar 17, 2026

Senate Banking Committee unveils draft CLARITY Act market structure text ahead of markup

May 11, 2026

Read the Senate draft (PDF) ↗

Senate Banking Committee approves CLARITY Act 15-9. Bill advances to Senate floor.

May 14, 2026

Coverage (CoinDesk) ↗

Senate floor vote — 60 votes required; ~9-10 Democrats needed to join all Republicans

May–Jun 2026

House-Senate reconciliation — align Senate text with July 2025 House-passed version

Jun–Jul 2026

Presidential signature — White House target date

Jul 4, 2026

SEC/CFTC agency rulemaking, public comment, and compliance phase-in (12–24 months post-enactment)

2027

Key Provisions

Provision	Description	Impact
Jurisdictional Clarity	Grants the CFTC exclusive jurisdiction over digital commodity spot markets while maintaining SEC authority over investment contract assets. Establishes clear boundaries aligned with the five-category taxonomy in Release No. 33-11412.	Tokens classified as Digital Commodities fall under CFTC jurisdiction; Digital Securities remain with the SEC. Eliminates years of regulatory ambiguity.
Decentralization Safe Harbor	Creates a 3-year safe harbor for digital asset projects to achieve sufficient decentralization, after which tokens may transition from security to commodity classification.	New projects can operate under temporary SEC oversight while building toward decentralization, then petition for commodity reclassification.
Stablecoin Yield Provisions	Addresses stablecoin yield rules alongside the GENIUS Act framework. Currently one of three contested provisions in Senate negotiations, with debate over Tillis-Alsobrooks language on yield-bearing stablecoins.	Will determine whether stablecoin issuers can offer yield to holders and under what regulatory framework, complementing the GENIUS Act's reserve requirements.
Consumer Protection Standards	Requires digital asset exchanges to implement custody standards, disclosure requirements, and conflict-of-interest policies.	Exchanges must segregate customer assets, provide clear fee disclosures, and maintain minimum capital requirements.
Tax Clarity	Provides clear guidance on digital asset taxation including a de minimis exemption for small transactions and clarity on staking rewards.	Transactions under $200 are exempt from capital gains reporting. Staking rewards are taxed as income upon disposition, not receipt.
Innovation Sandbox	Creates a federal regulatory sandbox allowing innovative digital asset projects to operate under limited supervision for up to 2 years.	Startups can test new models with reduced regulatory burden while maintaining basic consumer protections.

Jurisdictional Clarity

Grants the CFTC exclusive jurisdiction over digital commodity spot markets while maintaining SEC authority over investment contract assets. Establishes clear boundaries aligned with the five-category taxonomy in Release No. 33-11412.

Impact

Tokens classified as Digital Commodities fall under CFTC jurisdiction; Digital Securities remain with the SEC. Eliminates years of regulatory ambiguity.

Decentralization Safe Harbor

Creates a 3-year safe harbor for digital asset projects to achieve sufficient decentralization, after which tokens may transition from security to commodity classification.

Impact

New projects can operate under temporary SEC oversight while building toward decentralization, then petition for commodity reclassification.

Stablecoin Yield Provisions

Addresses stablecoin yield rules alongside the GENIUS Act framework. Currently one of three contested provisions in Senate negotiations, with debate over Tillis-Alsobrooks language on yield-bearing stablecoins.

Impact

Will determine whether stablecoin issuers can offer yield to holders and under what regulatory framework, complementing the GENIUS Act's reserve requirements.

Consumer Protection Standards

Requires digital asset exchanges to implement custody standards, disclosure requirements, and conflict-of-interest policies.

Impact

Exchanges must segregate customer assets, provide clear fee disclosures, and maintain minimum capital requirements.

Tax Clarity

Provides clear guidance on digital asset taxation including a de minimis exemption for small transactions and clarity on staking rewards.

Impact

Transactions under $200 are exempt from capital gains reporting. Staking rewards are taxed as income upon disposition, not receipt.

Innovation Sandbox

Creates a federal regulatory sandbox allowing innovative digital asset projects to operate under limited supervision for up to 2 years.

Impact

Startups can test new models with reduced regulatory burden while maintaining basic consumer protections.

What Changes for Your Token?

Digital Commodities

Clear CFTC oversight. Spot market regulation. Consumer protection standards applied to exchanges.

Digital Securities

SEC jurisdiction maintained. 3-year safe harbor for decentralization. Pathway to commodity reclassification.

Stablecoins

1:1 reserve requirements. Monthly attestations. Redemption guarantees. Banking regulator coordination.

Collectibles & Tools

FTC consumer protection. Marketplace disclosures. Innovation sandbox for novel utility models.

CLARITY Act News

Frequently Asked Questions

What is the CLARITY Act?+

The CLARITY Act (H.R. 3633, the Digital Asset Market Clarity Act of 2025) is a U.S. market-structure bill for digital assets. It grants the CFTC jurisdiction over digital commodity spot markets, keeps SEC authority over investment-contract assets, and creates a path for tokens to move from security to commodity status as their networks decentralize.

Has the CLARITY Act passed?+

Not yet — it is still moving through Congress. The House passed it on July 17, 2025 by a 294-134 vote. The Senate Banking Committee approved it 15-9 on May 14, 2026, and it is now advancing to the Senate floor, where 60 votes are required.

What would the CLARITY Act change for my token?+

It draws clearer lines: tokens treated as digital commodities fall under the CFTC, while investment-contract assets stay with the SEC. It also adds a multi-year decentralization safe harbor, consumer-protection standards for exchanges, a de minimis tax exemption for small transactions, and a federal innovation sandbox.

When will the CLARITY Act become law?+

The White House has set a target of July 4, 2026 for the bill to reach the President's desk, but that depends on a Senate floor vote and reconciliation with the House-passed text. Several provisions — including decentralization standards and stablecoin yield — remain under negotiation, so the timeline can shift.