The US Congress has taken an important step for the long-awaited clarity in cryptocurrency regulations. Members of Congress introduced an updated version of the CLARITY Act, a bill that aims to unify the laws overseeing the crypto market. The new draft is called the “Alternative Amendment”, or officially “Amendment in the Nature of a Substitute” (ANS), and will be debated at the House Financial Services Committee hearing on June 11.
Update to cryptocurrency law in the US
The new bill contains positive regulations, especially for developers and decentralized finance (DeFi) projects. Crypto developers and wallet providers will not be considered “money transfer service providers” if they do not have direct control over user funds. This means that DeFi tools and software where users store their private keys will be exempt from existing money services regulations. Furthermore, Bank Secrecy Act (BSA) rules will only apply to centralized intermediaries. This means that decentralized finance (DeFi) projects will be relieved of some regulatory pressure.
However, the law also introduces new provisions for banks regarding the use of digital assets. National banks will be able to offer legal services using digital assets and blockchain technology. However, these activities must be conducted in accordance with existing regulations. The same rights will apply to insured state banks and their subsidiaries.
The CLARITY Act mainly aims to clarify the classification of crypto-assets, the mandate of regulators and the rules to which market players are subject. The delineation of jurisdictional boundaries between the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) is crucial for the future of digital assets such as Bitcoin, Ethereum and stablecoins.
The amendments to the bill have been welcomed in the market. In particular, software developers and the DeFi community have welcomed the emphasis on the principle of “decentralization” in the bill. However, some experts note that this concept is difficult to define in the legal framework. Former CFTC Chairman Timothy Massad warned that over-reliance on decentralization could mean building regulation on an uncertain concept that could change over time.
Bitcoin reserve bill submitted to Congress
In the shadow of these legislative developments, another notable move came from Republican Representative Tim Burchett. Burchett introduced H.R. 3798, a bill to enact the strategic Bitcoin reserve plan proposed by former President Donald Trump. If passed, the US government would officially begin creating a Bitcoin reserve. Supporters argue that this plan would boost the US economy and increase crypto adoption, while critics point to Bitcoin's volatility.
