23-7-2025 – The Senate Banking Committee has released draft legislation that would fundamentally restructure how digital assets are regulated in the United States, proposing a framework that reduces securities oversight while expanding commodities regulation authority.
The CLARITY Act establishes a dual-regulator system between the SEC and CFTC, with the commodities watchdog gaining significantly broader jurisdiction over crypto markets. Under the proposed framework, most digital tokens would be classified as “ancillary” assets rather than securities by default, marking a substantial departure from current regulatory treatment of secondary market transactions. The SEC would retain oversight in specific circumstances involving investment contracts but would be mandated to adapt existing financial rules to accommodate crypto operations without weakening investor safeguards.
Key provisions address long-standing industry concerns including banking relationships, anti-money laundering compliance, custody arrangements, and disclosure requirements. The legislation’s timing aligns with President Trump’s recent signing of the GENIUS Act and his directive for Congress to complete comprehensive crypto legislation by September. Senator Cynthia Lummis praised the bill as essential infrastructure for establishing U.S. leadership in global crypto innovation.
The committee has opened a formal comment period seeking industry input on critical operational questions, including how exchanges should handle mixed securities and commodities trading, custody model standards, and enhanced measures for preventing illicit finance activities.
