New Cryptocurrency Bill Emerges as SEC Revamps Staking Regulations

On Thursday, the House Financial Services and Agriculture Committees presented the highly awaited bipartisan legislation known as the CLARITY Act. This proposed crypto bill aims to change the regulation of digital assets in the United States.

The legislation would transfer the oversight of the majority of crypto tokens from the SEC to the Commodity Futures Trading Commission (CFTC), which is perceived as more favorable towards crypto. Additionally, it establishes a new category called “digital commodities,” covering widely traded tokens like Bitcoin, Ethereum, Solana, Cardano, XRP, and Dogecoin.

The CLARITY Act introduces a novel designation known as a “mature blockchain system.” A blockchain may qualify for this label if it is open-source, decentralized, and no single company or entity manages more than 20% of the token supply. This aims to distinguish reputable blockchains from those that are potentially fraudulent or high-risk.

On the same day, the SEC issued updated guidance regarding cryptocurrency staking. It clarified that self-staking, staking-as-a-service, and services offering characteristics like slicing protection or personalized incentives do not fall under the definition of securities. This marks a significant shift from earlier views that suggested staking could be illegal.

Congress plans to hold a hearing on the CLARITY Act on June 4, followed by a markup session on June 10.

Also Read: More Democrats Expected to Join FIT21 Crypto Bill: Patrick McHenry

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