Senate Banking Panel Releases CLARITY Act Draft Ahead of Thursday Markup
The Senate Banking Committee released the draft CLARITY Act, which would permanently exempt Bitcoin and Ethereum from being classified as securities under federal law. The bill emerges from months of bipartisan negotiation, resolving disputes such as stablecoin yields and protections for developers. A key provision prevents the SEC from classifying any token as a security if it was the principal asset of a U.S.-listed spot ETF as of January 1, 2026, covering Bitcoin and Ethereum. Another section establishes a process where token issuers can certify their tokens as non-securities; if the SEC does not object within 60 days, this status becomes legally effective, substantially limiting SEC oversight over digital assets. Critics warn that automatic approvals and the ETF-based cutoff could weaken investor protections, tie regulatory status to arbitrary dates, and favor early-listed assets. Market observers note the finalized yield compromise and regulatory clarity could end industry caution, but warn the 60-day window and ETF provision might create loopholes or unfair distinctions among digital assets. The bill still requires full Senate approval and support from Democrats.
