The US Senate is preparing to release the draft of the CLARITY Act, which aims to modernize digital asset regulation and create a more transparent structure for market participants.
Key Provisions of the CLARITY Act
The draft CLARITY Act developed by the US Senate Banking Committee reflects a push for unified regulatory approaches to cryptocurrency following similar legislation advancement in the House. This cooperation signals a concerted legislative effort in crypto regulation.
CFTC's Role in Crypto Regulation
Under the draft, the Commodity Futures Trading Commission (CFTC) will gain primary oversight of digital commodities, requiring exchanges and custodians to follow new compliance measures. The act establishes standards for distinguishing investment contracts, impacting the classification of assets like BTC and ETH.
Market Impact and Future of Institutional Investments
Senator Bill Hagerty stated, 'Looked forward to working with my colleagues to move the CLARITY Act through the Senate in short order.' The draft is expected to lead to the reclassification of digital assets and foster a more conducive environment for institutional investors. Clarity in regulation historically boosts investor confidence.
The CLARITY Act draft represents a significant step toward streamlining and improving digital asset regulation in the US. With its implementation, an increase in institutional investment in the cryptocurrency sector is anticipated.
