Below CLARITY Actor Digital Asset Market Clarity ActCrypto market infrastructure legislation aimed at propelling the US financial system into the future.
The House version of the legislation was approved last year. The Senate version, meanwhile, struggled to gain enough traction to pass. Senate Banking Committee, A price increase hearing is scheduled for this Thursday.
While there were multiple issues being discussed, the biggest hurdle was stablecoin yield, or the ability of stablecoin holders to earn interest, similar to savings deposits. Old banks worked hard To prevent this from happening because they fear reduced profits and the need to compete with innovators.
Like today, banks won Since the bill bans returns from stablecoins, however, cryptocurrency innovators may suggest:awards“To stablecoin holders. Yet banks are working feverishly behind the scenes to build a larger regulatory moat to protect their businesses.
Unlike the previous Biden Administration, which opposed digital asset innovation and favored a regulation-through-enforcement approach, the CLARITY Act aims to establish a predictable, consistent framework of rules that provides clear guidance for innovators and protections for participants.
Critically, it provides parameters to determine whether a digital asset is regulated by the SEC or CFTC.
Download the CLARITY Act here or below.
Senator Tim ScottThe Senate Banking Committee Chairman said the legislation reflects serious, good-faith, bipartisan work that includes safeguards while allowing innovation to thrive.
“It puts consumers first, fights illicit finance, cracks down on criminals and foreign adversaries, and keeps the future of finance right here in the United States. It’s time to move forward,” Scott said.
Senator Cynthia LummisOne of the leading proponents of crypto innovation added that America should lead the way in financial innovation and that this legislation brings the United States one step closer to making the country go crazy as a global leader in the development of digital assets.
By the way, anti-innovation/anti-digital asset Senator Elizabeth Warren to have He expressed his opposition to the bill.
The main purpose of the legislation is to create a regulatory framework that clarifies its responsibilities; Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission for (CFTC) issuance, management and security of the digital asset ecosystem. Anti-financial crime measures, including AML, and other consumer protections are also part of the bill.
The bill also prohibits: US Federal Reserve It blocks the issuance of a consumer CBDC (central bank digital currency) or digital dollar and halts its use for monetary policy.
There are safe harbors and liability protections for developers and non-custodial protocols.
The Bank Secrecy Act has been extended to digital assets to combat illegal use.
The legislation creates a CFTC-SEC Micro-Innovation Sandbox to test new concepts and encourage international collaboration.
The bill is also a Joint Advisory Committee on Digital Assets. The SEC and CFTC are required to jointly appoint members who represent a broad range of interests. This committee may provide non-binding recommendations regarding digital asset regulations.
The policy objectives of the bill are summarized as follows:
- Clarity and dual-channel editing: Effort-related assets remain covered by the SEC; other network/digital commodities are moving to the CFTC.
- Innovation friendly: Strong safe havens for DeFi, staking (self-staking, liquid staking, custody staking), developers, decentralized governance and non-custodial protocols.
- Reducing risk: Enhanced AML/sanctions, customer asset separation in case of bankruptcy, stablecoin restrictions, illicit finance practices and cybersecurity standards.
- Consumer and market protection: Disclosures, training, streamlined record keeping, and regulatory sandboxes.
- Limitations on government overreach: Open CBDC and Federal Reserve restrictions.
The legislation may be the biggest change to securities law since the ’33 Act.
Although changes could be made, this week’s hearing in the Senate Banking Committee is a precursor to a full Senate vote on the legislation needed to sign the bill into law.
