The Senate Banking Committee is expected to begin drafting the Digital Asset Market Clarity Act on Thursday, May 14.
This is a pivotal moment for legislation that could establish the first comprehensive U.S. regulatory framework for cryptocurrencies.
The law distinguishes whether digital assets are securities or commodities, explaining whether the SEC or CFTC has jurisdiction, and establishes compliance rules for exchanges, brokers and stablecoins.
According to this law, the main aspects are:
- According to the bill, digital assets are classified into three categories, namely digital products, investment contract assets and authorized payment stablecoins.
- Cryptocurrency exchanges, brokers and dealers must remain compliant with anti-money laundering and sanctions, including Bank Secrecy Act regulations.
- Bitcoin ATMs must be registered with customer warnings, identification and withdrawal limits.
- It protects software developers who publish code but do not control customer funds.
- The law fills the gap left by previous regulations by establishing regulations for stablecoin issuers and their ability to pay rewards.
Last year, the House passed the bill after being delayed due to criticism from banks and crypto companies.
More than 130 amendments have already been submitted before Thursday’s markup session, including 44 from Sen. Elizabeth Warren (D-Mass.), who says the bill poses a threat to national security and does not provide sufficient protections against money laundering.
At least seven Democratic votes will be needed for the bill to pass the Senate. A party-line vote by the committee would mean very little chance of success, while bipartisan support would increase the bill’s chances.
