The US Senate is progressing in its efforts to establish rules for the majority of the cryptocurrency market, releasing a draft bill that provides clearer definitions for digital assets. The 35-page draft bill proposes new definitions for digital assets that are not considered securities and instructs the Securities and Exchange Commission (SEC) to create rules exempting these assets and their issuers from existing regulations. The bill also directs the SEC and the Commodity Futures Trading Commission (CFTC) to collaborate on rulemaking for certain aspects of crypto market activity. The draft bill follows the introduction of principles by the Senate Banking Committee last month, which will serve as a foundation for the bill.
It primarily focuses on the SEC, tasking it with creating rules for ancillary assets and disclosure requirements. The bill defines an 'ancillary asset' as a digital asset sold in connection with a security, but one that does not grant financial rights to its owner. This definition differs from the House's Clarity Act, which passed with bipartisan support but does not define an 'ancillary asset' in the same way.
The bill allows issuers to self-certify that their ancillary assets do not provide security-like rights, with the SEC having 60 days to reject the certification if it finds the asset resembles a security. Senators have expressed their commitment to providing clear rules for digital assets, protecting investors, and fostering innovation.
The lawmakers have also published questions for public response, seeking input on various aspects of the bill, including the definition of 'ancillary assets' and the treatment of intermediaries. The public has until August 5 to provide feedback.