The Senate Banking Committee will begin reviewing 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 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, including digital products, investment contract assets, and permitted payment stablecoins.
- Cryptocurrency exchanges, brokers, and distributors must comply with sanctions and anti-money laundering, including Bank Secrecy Act regulations.
- Bitcoin ATMs must be registered with customer warnings, identification, and withdrawal limits.
- Protects software developers who publish code but do not control customer funds.
- The law closes 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 suffering delays due to criticism from banks and crypto companies.
More than 130 amendments have already been filed ahead of Thursday’s review session, including 44 amendments from Sen. Elizabeth Warren (D-Mass.), who says the bill poses a national security threat and does not provide sufficient anti-money laundering protections.
At least seven Democratic votes will be needed for the bill to pass the Senate. A partisan vote by the committee would mean very little chance of success, while bipartisan support would increase the bill’s chances.
