The US Senate is taking a significant step towards establishing a clear framework for regulating digital assets. The Senate Banking Committee has scheduled a vote on legislation that would divide oversight of cryptocurrencies between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The proposed bill, referred to as the CLARITY Act, aims to provide clarity on which digital assets fall under SEC jurisdiction and which belong to the CFTC. This has been a long-standing issue in the crypto industry, with both regulators claiming authority over parts of the market for years.
Under the framework outlined in the bill, tokens that function primarily as securities would remain under SEC oversight, while those classified as digital commodities would fall to the CFTC. The legislation would need to define clear criteria to prevent overlap or regulatory gaps between the two agencies.