Senate Republicans Unveil New Crypto Regulatory Framework
Senate Republicans Propose New Crypto Rules
Senate Republicans have introduced a discussion draft to establish a clear U.S. crypto market structure. This initiative builds upon the CLARITY Act, which recently passed the House with bipartisan support.
Senators Tim Scott, Cynthia Lummis, Bill Hagerty, and Bernie Moreno unveiled the bill, proposing precise definitions for non-security tokens, tailored disclosures, and updated SEC oversight for digital assets.
The draft includes a Request for Information (RFI), inviting industry feedback on crucial aspects like custody and illicit finance. Sen. Scott emphasized that this proposal aligns with efforts to establish clear guidelines and maintain crypto innovation within the U.S.
A key element is defining “ancillary assets,” a new token category outside securities law. The bill instructs the SEC to implement Regulation DA, exempting specific token sales of up to $75 million annually for four years from registration.
Sen. Lummis highlighted the bill's goal to eliminate “regulatory uncertainty” that has pushed innovation overseas. She stated, “We cannot allow regulatory confusion to continue driving American innovation overseas.”
Other provisions would require the SEC to clarify “investment contract” rules, modernize existing laws for crypto's technical realities, and coordinate with law enforcement to tackle illicit finance.
Key Takeaways:
- The Senate draft defines ancillary assets and suggests Regulation DA to exempt certain digital asset sales from SEC registration.
- Senators are seeking public input on investor protection, custody solutions, and combating illicit finance, aiming to finalize crypto legislation.
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