The Senate Banking Committee is set to begin marking up the Digital Asset Market Clarity Act on Thursday, May 14.
This marks a pivotal moment for legislation that could establish the first comprehensive US regulatory framework for cryptocurrencies.
The law distinguishes whether digital assets are securities or commodities, explains whether the SEC or the CFTC has jurisdiction, and establishes compliance rules for exchanges, brokers and stablecoins.
According to this law, the most important aspects are:
- Under the bill, digital assets are categorized into three categories, including digital commodities, investment contract assets, and permitted stablecoins.
- Crypto exchanges, brokers and dealers must remain compliant with anti-money laundering and sanctions compliance, including bank secrecy rules.
- 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 bridges the gap left by previous regulations by setting rules for stablecoin issuers and their ability to pay rewards.
Last year, the House passed the bill after facing delays due to criticism from banks and crypto companies.
More than 130 amendments have already been submitted ahead of Thursday’s markup session, including 44 amendments from Sen. Elizabeth Warren (D-Mass.), who argues the bill poses a threat to national security and does not provide adequate protections against money laundering.
At least seven Democratic votes are needed before the bill passes the Senate. A party line vote in committee would mean very little chance of success, while bipartisan support would increase the bill’s chances.
