US Senate Advances Bipartisan Crypto Regulation Bills

The U.S. Senate is advancing bipartisan legislation to establish a clear regulatory framework for cryptocurrency markets, with two key committees preparing to mark up drafts this month. The Senate Agriculture Committee announced it will release the text of its crypto market structure bill by the close of business on January 21, followed by a markup hearing on January 27 at 3 p.m. Separately, the Senate Banking Committee released an updated draft of the Digital Asset Market Clarity Act, or CLARITY Act, on January 13, ahead of its markup scheduled for January 19.

The bills aim to divide oversight responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission, addressing long-standing uncertainties in digital asset regulation. They seek to protect consumers, combat illicit activities and support innovation by defining asset classifications and intermediary rules. Senate Agriculture Committee Chairman John Boozman described the process as ensuring transparency and thorough review to provide clarity and certainty for crypto markets. He credited Senator Cory Booker for partnership on the effort.

A central provision in the Banking...