CLARITY Act Finalized with Over 120 Democrat-Requested Changes
The Senate Banking Committee has released the final text of the CLARITY Act, which includes over 126 changes requested by Democrats. The revisions modify how federal agencies would classify and oversee digital assets, as well as what obligations would apply to token issuers, exchanges, banks, developers, and government officials.
The bill aims to provide clarity on the regulation of digital assets, including cryptocurrencies and other digital commodities. Token issuers would need to certify that their assets qualify as ancillary assets rather than securities in order to seek Regulation Crypto treatment or public resale.
The CLARITY Act also addresses concerns around illicit finance by classifying digital asset intermediaries as financial institutions under the Bank Secrecy Act and establishing risk-based compliance examinations. Additionally, it would impose sanctions compliance on front-end decentralized finance platforms.