Bipartisan negotiations over America’s most significant crypto regulation bill have intensified in recent weeks, with key senators targeting a committee vote before the Thanksgiving deadline despite an unprecedented government shutdown.
Senate Agriculture Committee Chair John Boozman (R-Ark.) confirmed that he and Senator Cory Booker (D-N.J.) are working “daily” to finalize language on the Digital Asset Market Clarity Act, commonly known as the CLARITY Act, which passed the House in July with overwhelming bipartisan support. Boozman expressed confidence the committee would complete its work this year, stating “We going to get it done year”.
Bill Creates CFTC-Led Framework
The legislation establishes comprehensive oversight for digital commodities—blockchain-based assets that don’t function as securities—by assigning primary regulatory authority to the Commodity Futures Trading Commission. Under the framework, digital assets trading on “mature blockchains” that have achieved decentralized control can be classified as commodities rather than securities, removing a major point of regulatory uncertainty that has plagued the industry.
The bill creates three new CFTC registration categories: digital commodity exchanges, brokers, and dealers, each subject to tailored compliance requirements including trade monitoring, customer asset segregation, and anti-money laundering provisions under the Bank Secrecy Act. The Securities and Exchange Commission retains jurisdiction over digital asset securities and certain broker-dealer activities on alternative trading systems.
Political Dynamics Shape Final Language
While the House passed its version by a 294-134 margin with 78 Democratic votes, Senate committees are crafting amendments to maximize bipartisan support before a full floor vote. Senator Cynthia Lummis (R-Wyo.) and other Banking Committee members have resumed talks after weeks of inactivity, though Lummis has suggested final passage likely won’t happen before year-end.
The Senate Agriculture and Banking committees must both approve the legislation before it reaches the Senate floor, where a 60-vote supermajority is typically required. Any Senate amendments would force the bill back to the House for reconciliation before reaching President Trump’s desk.
Industry Prepares for Watershed Moment
Legal analysts describe the CLARITY Act as a potential “watershed moment” for U.S. digital asset regulation, with global reverberations across the crypto ecosystem. The framework would offer registration exemptions for issuers selling less than $75 million in digital commodities annually and allow dual registration for entities handling both securities and commodities.
Fund managers and investment advisers face expanded compliance obligations under the new regime, with many potentially falling within broadened definitions of commodity pool operators and commodity trading advisors, triggering CFTC registration and reporting requirements. Implementation of final rules by federal agencies could take years once legislation is signed.
The negotiations continue against the backdrop of a 31-day government shutdown, now among the longest in U.S. history, as lawmakers from both parties race to complete market structure legislation before election-year politics complicate progress.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk, and readers should conduct their own research and consult with financial professionals before making investment decisions.
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