US Senate Crypto Bill: A Boost for Airdrops and DeFi?
Senate Drafts New Crypto Market Legislation
The Senate Banking Committee has released a draft of its market structure legislation, a 182-page document containing notable revisions. Key areas of focus include airdrops and staking, Decentralized Physical Infrastructure Networks (DePIN), and improved coordination between regulatory agencies. The bill also expands the use of regulatory exemptions, a tool recently employed by the Commodity Futures Trading Commission (CFTC).
Key Changes in the Crypto Bill
This new legislation follows the CLARITY Act, which has been under revision since its House passage in July. The draft bill aims to provide clarity on several pressing issues within the crypto market.
Staking and Airdrops Get Attention
The bill addresses whether staking rewards should be classified as securities, a designation that carries significant market weight. Continuing a trend, the Committee appears to be further excluding assets from being classified as securities, specifically mentioning airdrops as a potential exemption.
Protecting Developers and DeFi
Unlike the CLARITY Act, the new bill includes explicit protections for software developers, potentially influenced by the controversy surrounding the Roman Storm (Tornado Cash) trial. The legislation also aims to formalize coordination between the Securities and Exchange Commission (SEC) and the CFTC through a Joint Advisory Committee.
Expanding Regulatory Exemptions
A central theme of the bill is a move away from strict crypto enforcement through targeted exemptions. DePIN networks and DeFi developers could receive explicit permission to bypass certain existing regulations. This approach echoes the recent CFTC's “no-action letter” to Polymarket, allowing its return to the US market despite an ongoing ban.
The crypto industry has argued that traditional financial regulations are not suitable for Web3. These exemptions could be a critical step toward facilitating a smoother transition. While the bill has a long path to becoming law and is subject to further changes, it represents a significant development in the ongoing effort to create a clear and supportive regulatory framework for the crypto space.