CLARITY Act (Digital Asset Market Clarity Act)
- Issuing authority
- United States Congress
- Effective date
- Passed the U.S. House of Representatives in July 2025. It is awaiting further consideration in the U.S. Senate.
- Scope
- United States
Key requirements
The CLARITY Act passed the U.S. House of Representatives in July 2025 by a 294–134 bipartisan vote. In May 2026, the Senate Banking Committee approved a revised version of the bill. On 22 July 2026, Senate Republicans released a new 616-page draft combining the work of the Senate Banking and Agriculture Committees into a single bill. The updated draft introduces new government ethics provisions relating to federal officials and digital assets. The bill is still under consideration in the Senate and has not yet become law.
Quick Summary
The CLARITY Act is a proposed U.S. law that would create a clearer regulatory framework for digital assets. It aims to define which cryptoassets are regulated by the Securities and Exchange Commission (SEC) and which fall under the Commodity Futures Trading Commission (CFTC). Although it is not an anti-money laundering (AML) law, it would introduce important compliance obligations for certain crypto businesses, including AML, sanctions, and reporting requirements if enacted.
What is it?
The bill sets out when a digital asset should be treated as a security or a commodity, defines which regulator is responsible for supervising different crypto activities, and establishes requirements for certain digital asset intermediaries operating in the U.S.
Who does it apply to?
- Digital commodity brokers
- Digital commodity dealers
- Digital commodity exchanges
- Crypto trading platforms
- Crypto custodians
- Digital asset issuers
- Financial institutions offering digital asset services
- U.S. financial regulators
Why does it matter?
For years, many crypto businesses in the United States have faced uncertainty about which regulator oversees their activities. The CLARITY Act aims to resolve this by creating a clearer legal framework for digital assets.
What should firms do?
- Monitor the progress of the CLARITY Act through Congress.
- Review how the proposed framework could affect their business.
- Continue complying with existing U.S. AML, sanctions and Bank Secrecy Act (BSA) requirements.
- Assess whether future licensing, governance and reporting obligations could apply if the bill becomes law.
- Keep internal compliance programmes ready for potential regulatory changes.
AboutAML Breakdown
The CLARITY Act is not an AML law, but it could change the compliance landscape for crypto businesses in the United States. One of its most important AML provisions is Title II, which would bring certain digital commodity brokers, dealers, and exchanges within the scope of the Bank Secrecy Act (BSA).