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CIVIC HERALD
HR 3633 · 119th CongressOther

Digital Asset Market Clarity Act

In plain language: This legislation guarantees individuals the right to hold digital assets in personal wallets and conduct direct transactions, while explicitly barring the Federal Reserve from issuing a central bank digital currency for the general public. It establishes federal oversight rules that divide regulation of crypto assets between commodities and securities agencies, requiring trading platforms and crypto kiosks to register, segregate customer funds, follow anti-money-laundering rules, and display fraud warnings. The bill also protects independent software developers from being treated as financial intermediaries, allows commercial banks to offer digital asset custody, and adjusts federal community grant funding for cities based on how much housing they permit.

Provisional: our plain-language summary, pending review.

Provisionalunreviewed: impact, provisions, stakeholders, summary
People affected—The bill applies broadly to individual crypto holders, software developers, bank customers, and residents in CDBG-funded jurisdictions, but exact population counts are not specified in the operative text.
Fiscal magnitude—CBO cost estimate published (Estimated Budgetary Effects of H.R. 3633, CLARITY Act of 2025, 2025-07-10); dollar figure pending review extraction — see receipt
Reach85provisional · pending reviewrigor: heuristic llm
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Issues

What this bill touches.

Market protections+65Federal vs. state/local+40Banking/financial rules−55Land use & zoning−40Crypto & digital assets−75Security vs. privacy+65Ethics & oversight+30AI & emerging tech−45

The sign shows the bill's direction on each issue (+ toward, − away); the number is its magnitude. Color never encodes good or bad, and never party.

Who it affects

Who it helps · who it burdens.

Who it helps

  • Individual digital asset owners and self-custody usersProtects the right of individuals to maintain hardware and software self-custodial wallets and engage in lawful peer-to-peer digital asset transactions without intermediary financial institutions (Sec. 105(c), Sec. 512(3)(22), Sec. 605 (Div. B)). Also provides bankruptcy protections treating customer-held digital assets as protected customer property (Sec. 404(5i)(d)(4), Sec. 701 (Div. B)).provisional
  • Blockchain developers, validators, and node operatorsExempts non-controlling software developers, node operators, validators, mining participants, and self-custody wallet creators from regulation under the Securities Act of 1933, Securities Exchange Act of 1934, Commodity Exchange Act, and federal and state money transmitter licensing regimes (Sec. 109, Sec. 309, Sec. 409, Sec. 601 (Div. B), Sec. 604 (Div. B)).provisional
  • Banks, credit unions, and depository institutionsAuthorizes national banks, state banks, bank holding companies, and federal credit unions to offer digital asset custody, staking, lending, payment processing, node operations, and customer-driven market making, while prohibiting regulators from requiring custodied assets to be recorded as balance sheet liabilities (Sec. 310, Sec. 312, Sec. 401 (Div. B)).provisional
  • Digital commodity issuers and ancillary asset originatorsCreates a registration exemption under the Securities Act of 1933 allowing digital commodity and ancillary asset originators to raise up to $50 million annually (up to $200 million total) without full securities registration, while clarifying that secondary market sales and network tokens are not securities (Sec. 202, Sec. 203, Sec. 102 (Div. B), Sec. 103 (Div. B)).provisional
  • Financial Crimes Enforcement Network (FinCEN)Authorizes $30,000,000 annually for FinCEN for fiscal years 2026 through 2030 to fund digital asset enforcement, technology resources, and specialized personnel incentive premiums up to 20 percent (Sec. 903 (Div. B)).provisional
  • Metropolitan cities and urban counties with above-median housing growthAwards bonus Community Development Block Grant (CDBG) funding allocations to eligible cities and counties that achieve a housing growth improvement rate at or above the median (Sec. 904 (Div. B)).provisional

Who it burdens

  • Digital commodity brokers, dealers, and exchangesRequires registration with the CFTC, adherence to Bank Secrecy Act AML/CFT standards, customer asset segregation, qualified custody requirements, conflict of interest mitigation, capital and risk management rules, and prominent disclosures to customers (Sec. 106, Sec. 110, Sec. 404, Sec. 406, Sec. 407, Sec. 201 (Div. B)).provisional
  • Digital asset kiosk (crypto ATM) operatorsRequires digital asset kiosk operators to register physical kiosk locations with FinCEN every 90 days, hire a full-time compliance officer, implement anti-fraud policies, provide mandatory transaction receipts, enforce a 72-hour hold on new customer transfers, limit daily transactions to $3,500 for new customers, and refund fees to fraud victims (Sec. 205 (Div. B)).provisional
  • Permitted payment stablecoin issuers and digital asset service providersProhibits digital asset service providers from paying interest or deposit-like yield on payment stablecoin balances solely for holding them, under civil penalties up to $5,000,000, and requires payment stablecoin issuers to conduct monthly CPA examinations, executive certifications, and annual internal control attestation reports (Sec. 512, Sec. 404 (Div. B)).provisional
  • Affiliated persons and control persons of blockchain systemsImposes holding periods, volume restrictions, reporting obligations, insider trading liability, and profit disgorgement remedies on sales of covered tokens and digital commodities (Sec. 204, Sec. 104 (Div. B), Sec. 109 (Div. B), Sec. 411).provisional
  • Members of Congress and senior executive branch officialsBars members of Congress and senior executive branch officials from issuing digital commodities during their time in public service (Sec. 111).provisional
  • Metropolitan cities and urban counties with below-median housing growthDecreases Community Development Block Grant (CDBG) formula funding by 10 percent for eligible cities and counties with housing growth improvement rates below the median from FY2028 through FY2043 (Sec. 904 (Div. B)).provisional

Who backs it

  • Provisional digital commodity registrantsRequires persons in provisional registration status with the CFTC to pay initial and annual fees to cover CFTC regulatory costs under the Act (Sec. 106(b)(2), Sec. 410).provisional

Who opposes it

  • Federal Reserve Board and Federal Reserve Banks (CBDC issuance)Explicitly prohibits Federal Reserve banks and the Federal Reserve Board from directly or indirectly issuing a central bank digital currency (CBDC), offering accounts or financial services to individuals, or utilizing a CBDC to implement monetary policy (Sec. 602–604).provisional

Dollar-level funding (FEC sector totals) is coming in a later phase.

What it does

The provisions, in plain language.

  1. Protects the right of individuals in the United States to hold digital assets in personal software or hardware wallets and conduct peer-to-peer transactions for lawful personal purposes without financial institution intermediaries.

    Sec. 105(c)provisional

  2. Requires digital commodity brokers, dealers, and exchanges to register with the CFTC under an expedited provisional registration framework and mandates that unregistered entities prominently disclose their unregistered status to customers.

    Sec. 106provisional

  3. Amends federal securities laws to specify that the definition of an investment contract does not include an investment contract asset that is a digital commodity.

    Sec. 201provisional

  4. Establishes that secondary market sales of digital commodities by non-issuers and end-user programmatic distributions are not offers or sales of securities.

    Sec. 203provisional

  5. Excludes digital commodities and permitted payment stablecoins from the statutory definitions of security under major federal securities laws.

    Sec. 301provisional

  6. Grants the CFTC exclusive regulatory jurisdiction over cash and spot digital commodity transactions on registered trading platforms, while limiting CFTC authority over payment stablecoin operations.

    Sec. 401provisional

  7. Prohibits Federal Reserve banks and the Federal Reserve Board from directly or indirectly issuing a central bank digital currency (CBDC), offering accounts to individuals, or using a CBDC to conduct monetary policy.

    Sec. 602-604provisional

  8. Prohibits digital asset service providers from paying interest or bank-like yield on payment stablecoin balances solely for holding them, subjects violators to civil penalties up to $5,000,000, and allows bona fide activity-based transaction rewards.

    Sec. 404 (Div. B)provisional

  9. Adjusts Community Development Block Grant formula allocations from fiscal year 2028 through 2043 by awarding bonus funds to cities and counties with above-median housing growth and reducing allocations by 10 percent for jurisdictions with below-median housing growth.

    Sec. 904 (Div. B)provisional

How your members of Congress line up

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Timeline

How it moved.

  1. Aug 8, 2026Cloture motion on the motion to proceed to the measure presented in Senate. (CR S4557)
  2. Jun 1, 2026Committee on Banking, Housing, and Urban Affairs. Reported by Senator Scott SC, with an amendment in the nature of a substitute. Without written report.
  3. Jun 1, 2026Committee on Banking, Housing, and Urban Affairs. Reported by Senator Scott SC, with an amendment in the nature of a substitute. Without written report.
  4. May 14, 2026Committee on Banking, Housing, and Urban Affairs. Ordered to be reported with an amendment in the nature of a substitute favorably.
  5. Jul 17, 2025Motion to reconsider laid on the table Agreed to without objection.
  6. Jul 17, 2025On passage Passed by the Yeas and Nays: 294 - 134 (Roll no. 199). (text of amendment in the nature of a substitute: CR H3373-3397)
  7. Jul 17, 2025Passed/agreed to in House: On passage Passed by the Yeas and Nays: 294 - 134 (Roll no. 199).
  8. Jul 15, 2025Rules Committee Resolution H. Res. 580 Reported to House. Rule provides for consideration of H.R. 4016, H.R. 3633, H.R. 1919 and S. 1582. The resolution provides for consideration of H.R. 4016 and H.R. 3633 under a structured rule, and H.R. 1919 and S. 1582 under a closed rule, with one hour of general debate on each bill. The resolution provides for a motion to recommit on H.R. 4016, H.R. 3633, and H.R. 1919, and a motion to commit on S. 1582.
  9. Jun 23, 2025Reported (Amended) by the Committee on Financial Services. H. Rept. 119-168, Part II.
  10. Jun 23, 2025Reported (Amended) by the Committee on Financial Services. H. Rept. 119-168, Part II.
  11. Jun 23, 2025Reported (Amended) by the Committee on Agriculture. H. Rept. 119-168, Part I.
  12. Jun 23, 2025Reported (Amended) by the Committee on Agriculture. H. Rept. 119-168, Part I.
  13. Jun 10, 2025Ordered to be Reported (Amended) by the Yeas and Nays: 32 - 19.
  14. Jun 10, 2025Ordered to be Reported (Amended) by the Yeas and Nays: 47 - 6.
  15. May 29, 2025Introduced in House
  16. May 29, 2025Introduced in House

The original text

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Sources & provenance

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