3 weeks ago
Trump-backed Clarity Act heads to key Senate vote in September
Some important people in the United States are trying to make new rules for cryptocurrency, a kind of digital money that lives on computers.
Right now, it is confusing because no one is sure which government agency is in charge of watching over it.
A proposed law called the Clarity Act would create one clear rulebook for the whole country.
It would decide whether digital coins are like stocks you invest in or like money you spend.
The bill would also stop the president, vice president, and some members of Congress from starting their own digital money until January 2029.
Crypto companies would have to follow rules that help catch people who use digital money for crimes.
They could also raise up to $50 million in a year without as much government paperwork.
Banks and crypto companies disagree about whether customers should earn rewards on digital money.
The Senate will vote on the bill in September and needs support from both Democrats and Republicans to pass it.
The Clarity Act would establish a federal rulebook for cryptocurrencies, defining which digital assets are securities and which are commodities.
Senate Majority Leader John Thune has set up a procedural vote for mid-September, with Republicans needing 60 votes and support from at least eight Democrats.
The bill would bar the president, vice president and some members of Congress from issuing or sponsoring digital assets until January 2029.
Crypto firms would face new Bank Secrecy Act anti-money-laundering requirements but could raise up to $50 million annually without standard SEC registration.
Banks and crypto companies clash over stablecoin rewards, and Democrats are pushing for stronger enforcement of the ethics rules.
- Who
- Senate Majority Leader John Thune and Republican lawmakers, backed by President Donald Trump and the cryptocurrency industry, opposed by many Democrats and banks.
- What
- Advancing the Clarity Act, a bill to establish a comprehensive federal regulatory framework for cryptocurrencies that would still need House approval and Trump's signature after any Senate passage.
- Where
- The US Senate in Washington, D.C.
- When
- A procedural vote is scheduled for mid-September, after the August recess.
- Why
- To give the crypto industry regulatory certainty, define the roles of federal agencies, and address ethics, stablecoin rewards, anti-money-laundering rules, fundraising, DeFi and tokenized assets.
Democrats and banks
Republicans, Trump and the crypto industry
Ethics enforcement
Democrats and banks
Democrats want state attorneys general to be able to enforce the ban on officials' crypto ventures if the Justice Department fails to act.
Republicans, Trump and the crypto industry
The bill gives the Justice Department sole responsibility for enforcement and explicitly prevents state attorneys general from bringing enforcement cases.
Stablecoin rewards
Democrats and banks
Banks argue that allowing crypto companies to offer rewards could encourage customers to move deposits away from traditional financial institutions.
Republicans, Trump and the crypto industry
Crypto companies argue that a broad ban on rewards would limit competition and prevent exchanges and platforms from developing new products.
SEC enforcement powers
Democrats and banks
Critics worry the fundraising exemption and lighter rules would reduce the SEC's ability to police token sales as unregistered securities, reversing the Biden administration's enforcement approach.
Republicans, Trump and the crypto industry
Supporters say the bill provides legal certainty that resolves regulatory confusion and encourages investment and innovation in the US.
Key facts
- Bill
- Clarity Act
- Next vote
- Procedural vote mid-September, after the August recess
- Votes required
- 60 votes, including at least eight Democrats
- Officials' crypto ban
- President, vice president and some members of Congress barred from issuing or sponsoring digital assets until January 2029
- Fundraising exemption
- Up to $50 million annually and $200 million total without standard SEC registration
- Stablecoin rewards
- Banned on idle balances resembling bank deposits; permitted when linked to transactions
- Regulators involved
- SEC, CFTC and Treasury Department
- Trump crypto income
- More than $1.4 billion reported last year from his family's crypto ventures
Sources
Related news
US Crypto Rules Face Delay as Senate Defers Clarity Act
Trump Opens Door to More Bitcoin, Pushes Crypto Rules
Trump says Congress could regulate AI industry 'out of business'
Banks Plan Joint Dollar Stablecoin Launch in 2027
Bitcoin Tops $75,000 as Analysts Debate Crypto Rally's Strength
Bitcoin Surpasses $70,000 as Falling Yields, Trump Meeting Lift Optimism
SEC Plans to Expand Retail Access to Private Markets
SB Energy Files for IPO Amid Nvidia-Backed OpenAI Expansion
Terry Smith Abandons Fundsmith’s ‘Do Nothing’ Investment Strategy
MANGOS Gains Attention as AI Investment Basket Faces Hurdles
