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Definition: CLARITY Act


(1) Officially the Digital Asset Market Clarity Act of 2025, the CLARITY Act provides a regulatory framework for crypto and other digital assets such as art, music and software code in the U.S. In July 2025, the CLARITY Act passed the House and awaits the Senate.

CLARITY provides rules for exchanges and brokers as well as protections for consumers. It also defines the jurisdictions of the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) regarding digital assets. See Project Crypto, GENIUS Act and Project Hamilton.

(2) A 2000 Canadian law that dealt with provinces seeking secession.