The U.S. Senate Banking Committee, led by Senator Tim Scott, has released the draft of the CLARITY Act. The bill covers all aspects of the cryptocurrency industry and provides guidance on how regulators should approach transactions involving digital assets.
Firstly, the bill regarding the structure of the cryptocurrency market clearly states that digital assets, also referred to as "ancillary assets," do not constitute a security and that the secondary transactions involving them are not considered investment transactions. However, a part of the bill also contemplates cases where transactions of digital assets may constitute investment contracts.
As commodities, digital assets are now also under the jurisdiction of the Commodity Futures Trading Commission (CFTC), instead of the Securities and Exchange Commission (SEC). Additionally, the bill addresses issues such as banking, information disclosure, and anti-money laundering guidelines, as described by the Senate Banking Committee in the principles of the CLARITY Act published earlier.
The publication of the draft for the structure of the cryptocurrency market comes just days after Donald Trump signed the GENIUS Act. As revealed by Brian Armstrong, CEO of Coinbase, the White House has also given Congress a deadline of September to pass the CLARITY Act, which will likely be added to the stablecoin legislation as the second significant cryptocurrency law.
