- Congress unveils a new CLARITY Act draft aimed at providing regulatory clarity for crypto, especially DeFi and blockchain developers.
- Developers and wallet providers not controlling networks are exempt from being classified as money transmitters, easing compliance burdens.
- The bill also permits banks to use blockchain and digital assets while defining clear regulatory roles for the SEC and CFTC.
Congress is gearing up for significant moves in cryptocurrency regulation, as a recent draft of the CLARITY Act has just been released, setting the stage for an important markup session this Tuesday.
The updated version, formally called the Amendment like a Substitute (ANS), refines the original CLARITY Act proposal. FOX Business reporter Eleanor Terrett recently highlighted on X that this latest draft will be the focal point for the House Financial Services Committee’s discussion this week.
There are two versions of the bill in play: one from the House Financial Services Committee and another from the House Agriculture Committee. Both committees plan to review and amend their respective drafts independently before merging them into a unified final bill.
What makes this new draft particularly notable is its more crypto-friendly stance toward developers and decentralized finance (DeFi) platforms. As crypto analyst Franc Corva pointed out on X, the bill exempts blockchain developers who don’t have control over the network from being classified as money transmitters. This means many developers and wallet providers won’t face stringent regulatory burdens under this law.
Congress Backs DeFi Freedom in New Crypto Bill
Additionally, the bill protects DeFi activities and software that allow users to hold their private keys from heavy-handed regulation. Bank Secrecy Act rules would only apply to centralized intermediaries, leaving decentralized projects with more operational freedom.
The bill also introduces updated banking provisions in Sections 312(b) and (c), permitting national banks and insured state banks to utilize digital assets and blockchain technology in delivering legal services, provided they comply with existing regulations.
At its core, the CLARITY Act seeks to clearly define how U.S. laws apply to various types of cryptocurrencies, whether Bitcoin, Ethereum, stablecoins, or others. Importantly, it delineates regulatory authority between the SEC and the CFTC, offering much-needed clarity to crypto businesses about who oversees what.
This latest version is being seen as a positive development by industry insiders, providing a clearer, more predictable framework for innovation, compliance, and growth in the crypto sector.
Congress Reviews Bill to Create Strategic Bitcoin Reserve
In parallel, the U.S. Congress is also considering another groundbreaking bill, H.R. 3798, introduced by Representative Tim Burchett. This legislation aims to make the Trump administration’s vision of a strategic Bitcoin reserve official policy, potentially enabling the government to accumulate and hold Bitcoin as part of its financial assets.
The Bitcoin reserve bill is currently under review by the House Financial Services Committee. Proponents argue it could boost economic strength and accelerate crypto adoption nationwide, while critics remain cautious due to Bitcoin’s well-known price volatility.
As Congress moves forward with these measures, the crypto industry watches closely, hopeful that clearer regulations and innovative policies will help propel digital assets into the mainstream economy.
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