Digital Asset Market Clarity Act of 2025; CLARITY Act of 2025; Anti-CBDC Surveillance State Act
Summary
The Digital Asset Market Clarity Act of 2025 aims to establish a regulatory framework for digital assets, clarifying the roles of the SEC and CFTC. It seeks to define digital commodities and securities, set registration requirements for exchanges and intermediaries, and address the use of blockchain technology. A key component is the Anti-CBDC Surveillance State Act, which restricts the Federal Reserve's ability to issue a central bank digital currency (CBDC) directly to individuals.
Expected Effects
This act could lead to increased regulatory certainty for the digital asset market, potentially fostering innovation and investment. It may also limit the Federal Reserve's future options regarding monetary policy and digital currency. The act intends to protect individual privacy by preventing the creation of a CBDC that could be used for surveillance.
Potential Benefits
- Clearer regulatory guidelines for digital asset exchanges and intermediaries.
- Potential for increased investment and innovation in the digital asset space.
- Protection of individual privacy by limiting the Federal Reserve's ability to issue a CBDC.
- Codification of definitions related to blockchain technology and digital assets.
- Studies to explore the potential of blockchain technology and address illicit use of digital assets.
Potential Disadvantages
- Potential for over-regulation that stifles innovation.
- Restrictions on the Federal Reserve's ability to respond to future financial crises or technological advancements.
- Complexity of the regulatory framework may create barriers to entry for smaller businesses.
- Uncertainty regarding the long-term impact on the digital asset market.
- Potential for increased compliance costs for businesses operating in the digital asset space.
Constitutional Alignment
The Act's provisions regarding digital asset regulation align with Congress's power to regulate commerce (Article I, Section 8). The restrictions on the Federal Reserve's ability to issue a CBDC touch on monetary policy, an area where Congress has significant oversight. The Anti-CBDC Surveillance State Act component aims to protect individual privacy, potentially aligning with the spirit of the Fourth Amendment, although the Constitution does not explicitly address digital currency.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).