The US Senate Banking Committee released a draft of the CLARITY Act. It is a new bill that focuses on crypto market rules. The bill provides clear guidance on how digital assets should be regulated. The Trump administration is clearly pushing for more crypto rules , with President Trump signing the stablecoin legislation into law. The CLARITY Act terms digital assets “commodities” The CLARITY Act dictates that digital assets, also labeled as “ancillary assets,” are not securities and that their resale doesn’t constitute investment activity. However, it sets conditions under which such transactions could still be classified as investment contracts . The bill declares digital assets commodities, hence they will fall more squarely under the authority of the Commodity Futures Trading Commission (CFTC), which will work in tandem with the Securities and Exchange Commission (SEC). The bill also requires the SEC to modify its regulatory framework for continued investor protection. Moreover, the legislation touches on various critical topics, including banking services, transparency obligations, self-custody provisions, and anti-money laundering protocols. Senator Tim Scott, the lead on the release of the draft, commented, “I’m grateful for the hard work of our House counterparts to craft smart, bipartisan legislation, and I look forward to building on their work here in the Senate. Working with President Trump, we can deliver a comprehensive, bipartisan regulatory framework for digital assets.” The Digital Asset Market Clarity (CLARITY) Act just cleared the House with a 294-134 bipartisan vote. The Senate is now taking over where the House of Representatives left off. Nonetheless, some analysts do not support the bill. Mark Hays, associate director for cryptocurrency and financial technology at the Americans for Financial Reform nonprofit, argued that the bill will encourage double-dealing for any platforms with less strict rules. Amanda Fischer, policy director and COO at the nonprofit Better Markets and former SEC chief of staff, argued similarly, saying the Clarity Act is just an attempt to formalize the current business models of crypto firms, leaning more toward accommodating companies than aligning with existing securities laws. She added that the bill provides much weaker oversight of insider trading, market manipulation, and surveillance practices in the crypto sector. Senator Cynthia Lummis says the CLARITY Act will provide regulatory clarity for investors Senate banking leaders call on stakeholders and industry leaders to submit input on the draft. The Senate Banking Subcommittee on Digital Assets Chair Cynthia Lummis also shared her view on the draft, claiming that uncertainty around digital asset regulation is finally being addressed. According to Lummis, the draft strikes a thoughtful balance between offering regulatory clarity for innovators and safeguarding consumer interests. She added that the market structure bill will provide “clear distinctions between digital asset securities and commodities, modernize our regulatory framework, and position the United States as the global leader in digital asset innovation.” Meanwhile, according to Coinbase Chief Executive Officer Brian Armstrong, the Trump administration has asked for the bill to be passed by September. President Donald Trump just signed the GENIUS Act into law. The legislation is now the first crypto-specific law, setting up a regulation regime for dollar-backed stablecoins. The legislation supporters believe it will provide more clarity for the industry and ensure the US is the global crypto capital. Some also expect the law to encourage digital asset adoption. Your crypto news deserves attention - KEY Difference Wire puts you on 250+ top sites
Pundit: This Is Why They Shit on XRP
