NEW YORK (Web Desk)-The United States is moving closer to introducing one of its most significant cryptocurrency regulatory reforms as lawmakers prepare to debate a new bill aimed at bringing clarity to the fast-growing digital asset industry. The proposed legislation, known as the Clarity Act, was unveiled by the Senate Banking Committee ahead of a scheduled vote later this week.
The bill is designed to clearly define the authority of major financial regulators over cryptocurrencies and related businesses. Supporters believe the framework could encourage wider adoption of digital assets by reducing uncertainty that has surrounded the industry for years.
One of the most debated sections of the proposal focuses on stablecoins, which are digital tokens typically linked to the value of the U.S. dollar. Under the draft law, crypto firms would be restricted from offering rewards or interest-like returns on idle stablecoin balances if those products resemble traditional bank deposits. However, rewards connected to payment activity or transactions would still be permitted.
The proposal has already triggered disagreement between banks and crypto companies. Traditional financial institutions argue that allowing stablecoins to offer deposit-like features could pull customer funds away from regulated banks and weaken the banking system. Meanwhile, crypto industry leaders say limiting rewards on stablecoins would hurt innovation and reduce competition within the financial sector.
To enforce these rules, the bill would require the Securities and Exchange Commission, the Commodity Futures Trading Commission, and the Treasury Department to jointly create detailed regulations for the crypto market.
Another major feature of the legislation centers on anti-money laundering requirements. If passed, digital asset exchanges, brokers, and dealers would officially be treated as financial institutions under the Bank Secrecy Act. This would force crypto firms to follow stricter compliance standards, including customer identification checks, monitoring suspicious transactions, and maintaining due-diligence procedures similar to those followed by banks.
The bill also includes provisions that could make fundraising easier for crypto startups and blockchain companies. Under the proposed rules, companies in the sector would be allowed to raise up to $50 million annually and $200 million overall without registering with the SEC. This exemption could significantly reduce regulatory pressure on token sales and investment-linked crypto projects.
Legal experts say the measure may also weaken the SEC’s long-standing position that many crypto token sales qualify as unregistered securities offerings. That stance had been aggressively pursued during the administration of former President Joe Biden and supported in several court decisions.
The Clarity Act is now expected to become a central issue in the broader debate over the future of cryptocurrency regulation in the United States.
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