U.S. Senate committee releases draft crypto market structure bill

The U.S. Senate Committee on Agriculture has released a bipartisan draft bill covering the commodities portion of the proposed Crypto-Asset Market Structure Act (CLARITY), according to Eleanor Terrett, host of Crypto in America. The draft proposes to establish a clear definition for digital commodities and regulate spot markets in conjunction with the Commodity Futures Trading Commission (CFTC). It also includes strong consumer protections, such as segregating customer funds, preventing conflicts of interest, and mandating customer disclosures. Other provisions include creating a trading registration system, protecting self-custody and innovation, and requiring cooperation between the CFTC and the Securities and Exchange Commission (SEC). The overall CLARITY Act aims to create a regulatory framework for the crypto industry by dividing responsibilities between the SEC and CFTC. A key feature of the legislation is a provision to exempt cryptocurrencies that meet certain conditions from the registration requirements of the Securities Act of 1933.