Jason Gottlieb, Will Roth and Vani Upadhyaya Share Key Takeaways from Digital Asset Market Clarity Act of 2025 in Bloomberg Law
Partner Jason Gottlieb, Counsel William Roth and Associate Vani Upadhyaya authored an article in Bloomberg Law titled “The CLARITY Act Provides More Transparency for Crypto Oversight,” outlining key takeaways from the bipartisan Digital Asset Market Clarity Act of 2025. The authors explain that the bill aims to establish a clear regulatory framework for cryptocurrency in the U.S., building on prior legislative efforts to define agency oversight and reduce confusion for digital asset market participants. Key features include:
- Clarifies Regulatory Turf War Between the SEC and CFTC
Resolves longstanding jurisdictional uncertainty by defining “digital commodities” and assigning the CFTC primary authority over most crypto transactions, including secondary sales.
- Defines Treatment of Secondary Sales
Confirms that secondary sales of digital commodities by parties other than the issuer, agent or underwriter are not considered securities transactions, echoing recent federal court decisions in Ripple and Binance.
- Introduces the Concept of Blockchain “Maturity”
Establishes a framework for determining decentralization (“maturity”) of blockchain systems, requiring issuers to report progress to the SEC within a four-year window for certification.
- Establishes a Review Process for Blockchain Maturity Certification
Creates a structured back-and-forth review process with the SEC, allowing blockchain projects to seek maturity certification, with time limits in place to prevent indefinite regulatory limbo.
- Excludes Certain DeFi Activities
Exempts specific decentralized finance functions—such as validating transactions, operating nodes, offering user interfaces and developing or distributing self-custodial wallet software—from regulation under the Securities Exchange Act of 1934.
The authors conclude that while the current draft of the CLARITY Act may not end up being its final form, “the act is a strong basis for a long-needed update to the federal securities and commodities laws and moves away from the lack of clarity that has plagued the digital assets industry for the last decade.”
Read the full article here.