US Senate Committee to consider Clarity Act crypto bill next week
Crypto US Senate Committee to consider Clarity Act crypto bill next week The US Senate Banking Committee is set to markup the Clarity Act on May 14, a bipartisan bill that would establish the first comprehensive regulatory framework for digital assets in the country. The Clarity Act, formally known as the Digital Asset Market Clarity Act, would define the jurisdictional boundaries between the SEC and CFTC. In English: it would finally answer the question of whether a given token is a security or a commodity, and which agency gets to police it. What the bill actually does At its core, the Clarity Act is an attempt to replace what critics have called “regulation by enforcement” with an actual rulebook. Instead of the SEC suing projects after the fact and letting courts sort out the definitions, the bill would establish those definitions upfront. Stablecoin regulation is also on the table. Banks have been pushing to ban stablecoin rewards, arguing that yield-bearing stablecoins undermine traditional deposit bases. Crypto firms, predictably, see it differently, framing stablecoin yields as a form of financial innovation that shouldnt be strangled in the crib. The bill has attracted bipartisan backing, with Senators Cynthia Lummis and Thom Tillis among its most vocal supporters. Both have