The U.S. House of Representatives is set to vote on the CLARITY Act (H.R. 3633), a landmark bill that could reshape the regulatory landscape for digital assets and noncustodial crypto tools in the United States. After receiving strong bipartisan support in both the House Financial Services Committee (32-19) and the House Agriculture Committee (47-6), the bill is now advancing to the full House for consideration 1 2 3.
What’s at Stake for Crypto Users and Developers?
A key feature of the CLARITY Act is its explicit protection for noncustodial wallets and the developers who build them. Noncustodial wallets allow users to hold and manage their own digital assets without relying on third-party intermediaries, preserving privacy and direct control. The bill ensures that developers and providers of these noncustodial tools will not be classified as money transmitters under the Bank Secrecy Act (BSA), nor will they face new, similar registration requirements in the future 1.
This protection is enshrined in Section 110 of the bill, which states:
“A non-controlling blockchain developer or provider of a blockchain service shall not be treated as a money transmitter or as engaged in ‘money transmitting,’ or, following the date of enactment of this Act, be otherwise subject to any new registration requirement that is substantially similar to the requirement that currently applies to money transmitters.”
This language, adapted from the Blockchain Regulatory Certainty Act, is designed to safeguard innovation and ensure that developers can continue to create open-source, noncustodial crypto products without the threat of burdensome regulation 1.
Why Is This Important Now?
The debate over how to regulate noncustodial crypto services has intensified, especially as high-profile cases involving privacy-focused wallets like Samourai Wallet and Tornado Cash move through the courts. The CLARITY Act’s protections are seen as crucial for maintaining Americans’ rights to financial privacy and for supporting the continued growth of decentralized finance (DeFi) in the U.S. 1.
A Broader Regulatory Framework for Digital Assets
Beyond noncustodial tools, the CLARITY Act aims to provide a comprehensive regulatory framework for digital assets. It clarifies the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in overseeing the crypto market, and introduces provisional registration requirements for exchanges, brokers, and dealers. These measures are intended to bring greater certainty and transparency to the digital asset space, while supporting innovation and consumer protection 3.
Bipartisan Momentum and Industry Impact
The bill’s bipartisan support signals a growing consensus in Congress on the need for clear, balanced crypto regulation. Lawmakers and industry advocates alike see the CLARITY Act as a pivotal step toward making the U.S. a leader in digital finance and Web3 innovation 2 3.
“Blockchain technology and digital assets are reshaping the future of American finance – one that includes a more secure, decentralized, and inclusive system,” said Rep. French Hill, the bill’s sponsor 2.
As the CLARITY Act heads to the House floor, its outcome will be closely watched by crypto users, developers, and investors across the country.
