U.S. lawmakers are advancing legislative efforts to establish a regulatory framework for the cryptocurrency industry, with Senate committees scheduled to review a market structure bill. A draft of the "Clarity Act," proposed by the Senate Banking Committee, includes provisions that could designate certain crypto assets as "non-ancillary," potentially altering their classification and regulatory oversight by the Securities and Exchange Commission (SEC). The legislation also addresses key issues such as stablecoin rewards, decentralized finance (DeFi) platforms, and ethical considerations for public officials involved in digital asset ventures.
Legislative Overview
U.S. lawmakers are resuming efforts to pass a comprehensive market structure bill for the cryptocurrency industry. The Senate Agriculture and Banking Committees are scheduled to hold hearings, during which the bill's text may be revised. The proposed "Clarity Act" aims to implement legislative guardrails for the digital asset market.
Key objectives of the bill include:
- Clarifying the regulatory roles of the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) concerning cryptocurrencies.
- Establishing more defined classifications for digital tokens.
- Outlining registration and compliance standards for crypto brokerages, exchanges, and other entities operating in the U.S.
Summer Mersinger, CEO of the Blockchain Association, indicated that clear regulatory frameworks could encourage more digital asset companies to operate in the U.S., suggesting that a lack of such a law could reverse this trend.
Proposed "Non-Ancillary" Status for Cryptocurrencies
A draft of the "Clarity Act" circulated by Senate Banking Committee Chairman Tim Scott proposes a "non-ancillary" legal status for specific crypto assets. Under this provision, tokens included in a listed exchange-traded product (ETP) as of January 1, 2026, would be classified as non-ancillary assets, meaning they would not be treated as securities. This classification could exempt them from certain SEC disclosure requirements.
Based on current ETP listings, this provision could apply to cryptocurrencies such as XRP, Solana, Litecoin, Hedera, Dogecoin, and Chainlink. If enacted, these assets would be granted a regulatory status similar to Bitcoin and Ethereum. Analysts suggest that the primary impact of such a classification would be on institutional compliance and access to these assets, potentially establishing clearer regulatory pathways and widening institutional engagement.
Key Issues Under Discussion
Lawmakers plan to address several primary issues during this week's discussions:
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Stablecoin-Linked Rewards: This topic represents a point of negotiation. Cody Carbone, CEO of the Digital Chamber, stated that stablecoin rewards, interest, or yields will be addressed in the bill, with agreement reached by both Republicans and Democrats. The American Bankers Association's Community Bankers Council has urged Senate members to prevent stablecoin issuer affiliates from offering rewards, asserting that existing stablecoin products utilize a provision of last year's Genius Act that prohibits dollar-pegged tokens from offering yields, and suggesting these products could function as alternatives to high-yield savings accounts.
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Decentralized Finance (DeFi) Platforms: Crypto advocates are working to prevent developers from facing prosecution when their technology is used for illicit activities. Amanda Tuminelli, Chief Legal Officer for the DeFi Education Fund, has emphasized the importance of ensuring that obligations are not placed on code itself but rather on individuals, and that the technology is not inadvertently burdened. Advocates also seek provisions ensuring individuals can self-custody their crypto and advocate for incorporating elements from the Blockchain Regulatory Certainty Act, which exempts software developers and blockchain service providers who do not control or custody customer funds from registering as money-transmitting businesses.
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Profiting by Elected Officials: Some lawmakers, including Senator Elizabeth Warren (D-Mass.), aim to prevent public officials from profiting from digital asset ventures while in office. This issue was previously deferred in the House, but several Senate Democrats have indicated they will address it.
Outlook
The ultimate progression of this legislation remains subject to the current U.S. political landscape, with its finalization potentially linked to upcoming elections. The bill is scheduled for debate and potential amendment in a Senate Banking Committee markup hearing.