Key Takeaways
- The 35-page proposal defines “ancillary assets,” aiming to clarify which digital assets fall outside the category of securities and should not be regulated under existing SEC rules.
- The Senate Banking Committee has issued a formal request for information, inviting stakeholders to provide feedback on the discussion draft.
Four Republican senators on the U.S. Senate Banking Committee released a discussion draft on Tuesday outlining a proposed regulatory framework for digital assets. The draft legislation builds upon the Digital Asset Market Clarity (CLARITY) Act, which passed the House of Representatives on July 17 with bipartisan support.
The discussion draft was introduced by Senate Banking Committee Chairman Tim Scott, along with Senators Cynthia Lummis, Bill Hagerty, and Bernie Moreno. The 35-page proposal defines “ancillary assets,” aiming to clarify which digital assets fall outside the category of securities and should not be regulated under existing SEC rules.
The draft legislation directs the U.S. Securities and Exchange Commission (SEC) to develop new rules to exempt specific offers or sales of ancillary assets from existing registration requirements. It also calls on the SEC to establish a working definition of “investment contract” that reflects the unique nature of digital assets. Simultaneously, the bill encourages a joint rulemaking process between the SEC and the Commodity Futures Trading Commission (CFTC) to ensure coordinated oversight on digital asset market activities such as portfolio margining.
The proposed Senate bill mirrors several provisions of the CLARITY ACT and was described by lawmakers as building on the House-passed legislation. The senators stated that the goal is to provide regulatory certainty to digital asset issuers and investors while ensuring that the United States remains a leader in financial innovation.
The House passed the CLARITY Act on July 17 with a 294-134 vote. The Act will now be considered by the Senate.
According to a press release issued Tuesday by the Senate Banking Committee, the draft legislation includes measures to enhance disclosure requirements for ancillary assets, prevent illicit financial activity, and support responsible banking innovation involving blockchain and digital assets.
Senator Scott emphasized the shared objective of lawmakers in both chambers to deliver clear and effective regulation for the evolving digital finance sector. He stated that the legislation is intended to “protect investors, foster innovation, and keep the future of digital finance anchored in America.”
Despite the momentum from the House, the bill’s prospects in the Senate remain uncertain. While the GENIUS Act—a separate crypto bill focused on stablecoins—has already been signed into law, the CLARITY Act may face pushback. Senate Democrats who supported the House version have expressed concerns about consumer protections and potential conflicts of interest involving President Trump’s ties to the crypto industry.
The Senate Banking Committee has issued a formal request, inviting stakeholders to provide feedback on the discussion draft. The request includes 35 specific questions covering issues such as regulatory definitions, enforcement, innovation, and market integrity.
