As the Senate Banking Committee prepares for the markup of the anticipated crypto market structure bill, known as the CLARITY Act, an updated draft has been released following extensive negotiations.
Major Takeaways From The Crypto Bill’s DraftAs a result, registered intermediaries will be allowed to facilitate staking for customers while ensuring that individual assets are segregated from the platform’s own funds. However, assets can be pooled with others for efficiency, such as through an omnibus account.
Key wins for consumers include an explicit right to self-custody. Section 105(c) of the bill grants US individuals the right to maintain a hardware or software wallet for their own lawful custody of digital assets.
Additionally, this section protects the ability to engage in direct peer-to-peer (P2P) transactions using self-custody wallets without the need for financial intermediaries.
This provision of the crypto market structure bill protects developers of wallets, such as those from Ledger, Tangem, and MetaMask, from being regulated as financial institutions solely based on their coding efforts.
Critical Insights On DeFi ProvisionsSpecifically, Section 309 states that individuals will not be subject to the Securities Exchange Act solely for activities such as developing DeFi trading protocols, publishing user interfaces for blockchain systems, or operating nodes.
For consumers using DeFi products and protocols, the Act creates a legal “safe harbor,” allowing continued use of decentralized finance without the imposition of forced intermediaries. However, it is important to note that this does not provide immunity for any illicit financial activities.
After months of hard work, we have bipartisan text ready for Thursday’s markup. I urge my Democrat colleagues: don’t retreat from our progress. The Digital Asset Market Clarity Act will provide the clarity needed to keep innovation in the U.S. & protect consumers. Let’s do this!
As for the crypto bill’s likelihood of passing, Barron suggests a medium-high probability, estimating a 60-70% chance it could become law in early 2026.
However, the expert asserted that the outcome may hinge on either removing or softening the “Anti-CBDC” provisions or making concessions to banks regarding stablecoin reserves to meet the Senate threshold.
Featured image from DALL-E, chart from TradingView.com
