Senate Unveils CLARITY Exempting Bitcoin, Ethereum
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- Senate Banking Committee released the CLARITY Act draft on Wednesday ahead of a Thursday markup.
- CLARITY Act would bar the SEC from classifying Bitcoin and Ethereum as securities after Jan 1 2026, effectively exempting them from federal securities law.
- Section 102 creates a 60‑day auto‑certification window for token issuers to submit evidence that a token is not a security, becoming effective if the SEC does not object.
- Tim Scott jointly released the draft with Cynthia Lummis and Thom Tillis after months of bipartisan negotiations, including a stablecoin yield compromise brokered with Angela Alsobrooks.
- Coinbase pulled its support for the bill in January over stablecoin yield restrictions, causing a delay that was later resolved.
Why it matters: Crypto issuers gain a clear, SEC‑free status for Bitcoin and Ethereum, while the SEC loses jurisdiction, changing U.S. digital‑asset markets and influencing investor confidence for market participants.
