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Senate’s crypto bill takes different approach from CLARITY Act

6 hours agoby Ledger Insights

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Yesterday the Senate Banking Committee published a discussion draft of its crypto market infrastructure bill, the Responsible Financial Innovation Act (RFI Act). It is very different from the House’s CLARITY Act, given it grants major responsibilities to the Securities and Exchange Commission (SEC) not the Commodity Futures Trading Commission (CFTC). Most cryptocurrencies will fall under SEC jurisdiction, even though they will be exempt from many aspects of securities laws. The Agriculture Committee has yet to propose its draft law related to the CFTC, but based on the Banking Committee bill, that’s more likely to relate to typical derivatives activities.

There’s significant logic in giving the SEC jurisdiction. The agency is around six times larger than the CFTC and is more used to dealing with consumer investors. Additionally, the Senate approach is cleaner, making the SEC the regulator of both conventional securities and these quasi crypto securities it calls ‘ancillary assets’. In recent months the SEC’s Crypto Task Force led by Commissioner Hester Peirce has made significant strides, whereas all the CFTC’s sitting commissioners have resigned from the agency.

Two of the most notable ideas in the bill are a new Regulation DA exemption for token offerings and expanding the SEC’s mission to include innovation and efficiency. This regulatory shift reflects broader congressional priorities.

“We cannot allow regulatory confusion to continue driving American innovation overseas,” said Senator Cynthia Lummis, one of the bill’s sponsors. “Market structure legislation will establish 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.”