Senate Readies Updated CLARITY Act Text Ahead of July Vote Push

The Senate is nearing the release of updated text for the CLARITY Act, which aims to bring clarity to crypto market-structure rules. The bill has already cleared the Senate Banking Committee with a 15-9 vote, but still needs to pass the full Senate.

The CLARITY Act would create federal market-structure rules for digital assets, including definitions for digital commodities and securities. It also places oversight of digital commodity markets with the CFTC, while keeping digital asset securities under SEC authority.

Despite concerns from some lawmakers, including Sen. Elizabeth Warren, who warned about creating new loopholes, the National Organization of Black Law Enforcement Executives has endorsed the bill, citing its ability to preserve existing criminal authorities and add tools for investigations.