New Draft Circulated
On the evening of September 5, the Senate Banking Committee privately circulated a full draft of the Clarity Act, aimed at establishing comprehensive regulatory authority over crypto markets in the United States. This draft follows the House-passed Digital Asset Market Clarity Act and represents a more detailed legislative proposal.
Key Provisions
- Developer Protections: Legal safeguards for distributed ledger system developers and DeFi infrastructure contributors were expanded, limiting liability for code authors.
- Bankruptcy Guidelines: Clarification on treatment of “ancillary assets” in crypto bankruptcies, designating digital commodities as customer property.
- Tokenization Study: Mandate for joint SEC-CFTC research into tokenized securities and real-world assets, followed by tailored rulemaking pathways.
- Regulatory Scope: Definitions for transitioning assets between security and commodity classifications based on technology and use cases.
Legislative Process
Senate Banking Chairman Tim Scott set targets for markup and floor votes. This draft arrives as the Senate returns from recess, with competing committee priorities on the legislative calendar. Bipartisan support remains crucial to achieving the 60-vote threshold.
Industry Reaction
Crypto lobbying groups praised the robust developer protection language. Observers anticipate input from agriculture and banking committee members to refine jurisdictional authority between agencies.
Next Steps
The bill is scheduled for a markup session in late September. Amendments are expected as senators negotiate on digital asset definitions and oversight mechanisms. A floor vote could follow, with House concurrence required for final passage.
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