#CryptoClarityAct The Senate's cryptocurrency bill takes a different approach than the CLARITY Act, the Responsible Financial Innovation Act (RFI). This law is very different from the House of Representatives' CLARITY Act, as it grants significant responsibilities to the Securities and Exchange Commission (SEC), not to the Commodity Futures Trading Commission (CFTC). Most cryptocurrencies will fall under the jurisdiction of the SEC, although they will be exempt from many aspects of securities legislation. The Agriculture Committee has not yet proposed its bill related to the CFTC, but according to the Banking Committee's bill, it is more likely to refer to typical derivatives activities.

There is significant logic in granting jurisdiction to the SEC. The agency is approximately six times larger than the CFTC and is more accustomed to dealing with retail investors. Moreover, the Senate's approach is clearer, making the SEC the regulator of both conventional securities and these quasi-cryptoassets it refers to as "ancillary assets." In recent months, the SEC's Cryptocurrency Working Group, led by Commissioner Hester Peirce, has made significant progress, while all sitting commissioners of the CFTC have resigned from the agency. Two of the most notable ideas in the bill are a new exemption from Regulation DA for token offerings and the expansion of the SEC's mission to include innovation and efficiency. This regulatory change reflects broader priorities of Congress.

"We cannot allow regulatory confusion to continue driving American innovation overseas," stated Senator Cynthia Lummis, one of the bill's sponsors. "Market structure legislation will establish clear distinctions between digital asset securities and commodities.