US Senate Publishes Updated Version of Cryptocurrency Regulation Bill

An updated text of the Clarity Act, a bill in the U.S. Senate on regulating the cryptocurrency market, has been published. The document establishes how the digital assets market should be regulated and which agency will be responsible for its oversight.

According to the bill, until January 2029, the President, Vice President, and certain members of Congress will be prohibited from issuing or supporting their own cryptocurrency. This provision aims to limit potential financial gains that politicians could derive from crypto assets.

The document also changes rules related to stablecoins. Companies will no longer be allowed to pay users interest solely for holding cryptocurrency in their accounts, although incentives will be permitted if the stablecoin is used for payments.

The bill requires crypto exchanges, brokers, and dealers to comply with the same anti-money laundering rules that are imposed on banks. They will need to identify users and monitor suspicious transactions.

The Clarity Act also simplifies fundraising rules for crypto companies. Within certain limits, they will be able to raise capital without registering with the Securities and Exchange Commission (SEC), creating additional opportunities for new projects.

The bill for the first time defines the conditions under which a crypto platform will be considered fully decentralized. If a platform is able to restrict users or intervene in transactions, it will be required to comply with requirements imposed on financial institutions.

Source: Yahoo Finance