Digital Asset Market Clarity and Consumer Protection Act of 2025

This Act establishes a regulatory framework for digital commodities—digital assets whose value derives from a decentralized blockchain network. The Commodity Futures Trading Commission (CFTC) has primary authority over digital commodity transactions, including exchanges, brokers, and dealers. The Securities and Exchange Commission (SEC) retains jurisdiction over digital assets that are securities under existing law, but this Act clarifies that a digital commodity on a mature blockchain is not a security. To qualify as a digital commodity, the asset must be on a blockchain that is fully decentralized and mature, as defined by clear, objective criteria: (1) no single entity controls more than 20% of the network's mining or validation power, (2) the blockchain has operated without material disruption for at least two years, and (3) the source code is publicly available and audited. The CFTC and SEC jointly issue a list of qualifying blockchains, updated annually, with a public comment period. Digital commodity exchanges, brokers, and dealers must register with the CFTC, comply with trade monitoring, recordkeeping, and customer asset segregation rules, and adhere to Bank Secrecy Act anti-money laundering requirements. The CFTC may exempt small issuers (annual sales under $10 million) from certain reporting requirements to reduce burdens on innovation. This Act is funded by a 0.01% fee on each digital commodity transaction, deposited into a Digital Commodity Oversight Fund capped at $50 million per year (adjusted for inflation). The fund supports CFTC enforcement and the joint advisory committee. The Act sunsets after five years, requiring Congress to reauthorize based on a report from the Government Accountability Office on market impact and consumer protection. A joint CFTC-SEC Digital Asset Advisory Committee, including industry, consumer, and academic representatives, provides ongoing input on rulemaking and definition updates. Enforcement includes civil penalties up to $1 million per violation and a private right of action for harmed parties. The effective date is 180 days after enactment to allow agencies to issue implementing rules.