Senate Advances Landmark Crypto Bill Amid Industry Calls for Clarity

The Senate has advanced legislation to establish the first comprehensive federal framework for the cryptocurrency industry. The bill, known as the CLARITY Act, aims to provide clearer rules for digital assets and determine which tokens fall under securities or commodities laws.

Senate Majority Leader John Thune, R-S.D., took procedural action to advance the bill, which will be put to a final vote in September when Congress returns from its August recess. The CLARITY Act would give the Commodity Futures Trading Commission a larger role in regulating digital assets while defining which cryptocurrencies fall under the jurisdiction of the Securities and Exchange Commission.

The legislation is a major priority for the cryptocurrency industry, which has long called for greater clarity on regulatory matters. By dividing regulatory authority over the digital asset market, the CLARITY Act aims to provide a clearer understanding of which laws apply to different types of cryptocurrencies.