Senate Blocks Advancement of Crypto CLARITY Act

The US Senate has failed to advance the Crypto CLARITY Act, which was intended to establish clear guidelines for regulating digital assets.

The bill aimed to divide regulatory responsibility between the Commodity Futures Trading Commission and the Securities and Exchange Commission.

It also introduced the concept of 'ancillary assets,' network tokens whose value depends on entrepreneurial or managerial efforts, while treating them as commodities and requiring specific disclosures.

The CLARITY Act sought to address issues plaguing decentralized finance by requiring CFTC registration for relevant spot digital-commodity activity on centralized DeFi protocols.