CLARITY Act Vote Looms: Crypto Regulation Bill Faces Crucial Senate Deadline
The CLARITY Act is a comprehensive bill that aims to regulate the cryptocurrency market in the US. With over 600 pages, it's set to rewrite the rulebook for crypto and determine who regulates every token held by investors. The Senate has until August 7th to vote on the bill, which requires 60 votes to pass.
The current bill divides assets between the SEC and CFTC based on their level of decentralization. If an asset's value depends on a central team's efforts, it falls under the SEC's jurisdiction. However, if the network is sufficiently decentralized, it becomes a 'digital commodity' under the CFTC.
Exchanges will be required to register with the CFTC and meet bank-like standards on capital, risk controls, and market surveillance. Client assets must also sit with qualified custodians, and platforms can no longer use customer deposits as their own money.
The bill also includes a 'maturity' test for tokens, which can graduate from being securities to digital commodities once they decentralize. This will provide a clear compliance path for projects and reduce regulatory ambiguity in the market.