TLDR
- Senate Republicans introduced a draft bill to expand the CLARITY Act and define the U.S. crypto market structure.
- The bill creates a new category called ancillary assets to classify certain tokens outside securities law.
- It directs the SEC to implement Regulation DA to exempt qualifying token sales from registration requirements.
- The proposal includes tailored disclosures and modernized oversight for non-security digital assets.
- Cynthia Lummis played a key role in developing the bill and emphasized reducing regulatory uncertainty.
Senate Republicans introduced a comprehensive draft to define U.S. crypto market structure, aiming to expand the recently passed CLARITY Act. The proposal outlines regulatory definitions, SEC exemptions, and a streamlined oversight model for digital assets. Lawmakers seek to keep the nation at the forefront of crypto innovation through a clear and unified legal framework.
Bill Proposes New Token Classifications and Regulatory Clarity
The new discussion draft introduces a category for “ancillary assets” to distinguish specific crypto tokens from traditional securities. It mandates the SEC to implement Regulation DA, which would exempt token sales under $75 million annually for four years. This exemption aims to simplify compliance and foster early-stage crypto development within the United States.
The bill also directs the SEC to revise the definition of investment contracts to suit the digital asset environment. It calls for updates to existing securities laws, ensuring they reflect modern crypto technologies and markets. These revisions would reduce ambiguity and assist businesses with predictable compliance paths.
Additionally, the proposal includes disclosure frameworks tailored for non-security tokens to enhance transparency while avoiding overregulation. Lawmakers designed these rules to promote innovation without compromising investor information, reflecting a shift toward a balanced approach to crypto regulation.
Cynthia Lummis and Senate Republicans Seek Unified Legislative Approach
Senator Cynthia Lummis played a central role in crafting the draft alongside Senate Banking Chair Tim Scott and other co-sponsors. Cynthia Lummis emphasized ending regulatory uncertainty to retain blockchain innovation within U.S. borders. The draft complements the House-approved CLARITY Act, pushing for swift bipartisan Senate action.
Cynthia Lummis and her colleagues included a Request for Information (RFI) in the proposal to gather industry input. They aim to evaluate custody practices, illicit finance risks, and emerging challenges tied to blockchain systems. Cynthia Lummis stated the bill creates clear legal pathways for compliant digital asset activity.
