U.S. Senate Unveils CLARITY Act to Define Crypto Market Rules

The U.S. Senate Banking Committee has introduced the long-awaited crypto market structure bill, the CLARITY Act . This new bill was introduced shortly after the GENIUS Act became law. It aims to provide clear and valuable guidelines for the rapidly growing crypto industry. Both laws demonstrate that the government is adopting a new and more organized approach to digital currencies and blockchain technology . U.S. New Rules Say Digital Assets Are Not Securities The drafted CLARITY Act, led by Senator Tim Scott and his team, provides a broad overview of how the crypto market should operate in the U.S. One key aspect of the CLARITY Act is its explanation of what digital assets are. The bill states that digital assets, also referred to as “ancillary assets,” should not be treated like regular investments or stocks. This means people can buy and sell them on trading platforms without following the same strict rules as traditional investments. However, in some cases, the bill states that certain crypto deals could still be considered investment contracts. This can occur if a company sells a token with the promise that buyers will earn money from the efforts of others. Oversight Shifts to the CFTC In a significant shift, the bill assigns primary oversight of crypto to the Commodity Futures Trading Commission (CFTC). Previously, the Securities and Exchange Commission (SEC) was primarily responsible for regulating cryptocurrencies . With this new bill, digital assets will be treated more like commodities, such as oil or gold, instead of stocks. This change should make things less confusing and prevent different agencies from duplicating efforts. It will also help crypto companies better understand the rules and know how to comply with U.S. law. U.S. White House Sets Deadline For Crypto Reform The CLARITY Act does more than define tokens. It also covers other essential parts of the crypto world. It lays out rules on how banks can interact with digital assets and requires that users and investors get transparent and fair information. Also, it strengthens anti-money laundering (AML) rules, aimed at preventing digital assets from being used for illegal activities. These sections match the CLARITY Act goals shared earlier by the Senate Banking Committee. They aim to keep users safe while still allowing new ideas in financial technology to grow. Furthermore, Coinbase CEO Brian Armstrong recently revealed that the White House has given Congress until September to pass the CLARITY Act. If successful, the bill will likely join the newly passed GENIUS Act bill and the pending stablecoin legislation as part of a larger legal framework for crypto in the United States. This timeline adds pressure on lawmakers to act quickly. It also shows that the government wants to support a well-organized and trusted digital asset market. The post U.S. Senate Unveils CLARITY Act to Define Crypto Market Rules appeared first on TheCoinrise.com .

Source: The Coin Rise