As comprehensive regulatory efforts targeting the cryptocurrency market in the United States deepen, Senator Cynthia Lummis has issued a significant update on a key piece of legislation: the CLARITY Act. Lummis, also a key architect of the "Bitcoin Strategy Reserve Act," stated that the highly anticipated bill is expected to be finalized by the end of this year.
Speaking at the DC Blockchain Summit in Washington D.C., Lummis revealed that the Senate Banking Committee will review the bill after the Easter recess in late April. The committee anticipates making modifications to the legislation before it is submitted for a vote. Lummis further clarified the timeline, stating, "In April, after the Easter break, we will mark up the bill."
This regulatory bill is crucial for establishing a legal framework for the cryptocurrency market in the United States. It aims to clarify the jurisdictional boundaries between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), define the conditions under which digital assets are considered securities or commodities, and introduce new transparency obligations.
Last year, a similar CLARITY Act bill passed the House of Representatives with bipartisan support. However, its progression through the Senate has been more complex. In January, the Senate Agriculture Committee passed its version of the bill solely on Republican votes, with Democrats withholding their support.
Furthermore, a key hearing in the Senate Banking Committee, originally scheduled for January, was postponed after cryptocurrency exchange Coinbase withdrew its support.