Senate Reaches Critical Mass on CLARITY Act Regulation Bill
The Senate has made significant progress on the CLARITY Act, a bill aimed at regulating digital assets. The latest development is the release of a merged draft that combines the versions from the Senate Banking and Agriculture Committee into a single package.
One key provision in the draft is an ethics rule that bars federal officials from issuing or sponsoring digital assets. This includes the President, Vice President, members of Congress, and their spouses during their terms in office.
The rule sunsets on January 20, 2029, but provides safe harbor protection for officials who place existing crypto holdings into a qualified blind trust or divest them.
Regulatory jurisdiction will be split between the SEC and CFTC. Digital assets that function as securities will fall under SEC authority, while digital commodities like XRP will go to the CFTC.