TLDR
- The U.S. Senate has started drafting its version of the CLARITY Act to regulate cryptocurrency markets.
- The Senate Banking Subcommittee will hold a hearing on the CLARITY Act on June 24 to begin formal discussions.
- The bill will focus on defining digital assets and creating a framework for market oversight and investor protection.
- The Senate version of the CLARITY Act will differ from the House proposals currently under review.
- Lawmakers expect the discussion draft of the CLARITY Act to be released in the coming weeks.
The U.S. Senate has begun drafting its version of the CLARITY Act to regulate cryptocurrency markets. The bill aims to establish rules for classifying digital assets and improve transparency and investor protection. The Senate Banking Subcommittee will address the bill in a hearing scheduled for June 24.
Senators are focusing on building a comprehensive market structure for cryptocurrencies and digital assets. While the House has introduced several proposals, the Senate version will differ in key regulatory areas. It is expected to include new frameworks for oversight and compliance.
This move signals growing momentum for clear digital asset regulation in Congress. Lawmakers want to eliminate uncertainty for businesses while ensuring proper consumer safeguards. The upcoming hearing will help shape the Senate’s approach before releasing the discussion draft.
CLARITY Act to Define Digital Asset Rules
The CLARITY Act will introduce specific definitions and classifications for various types of digital assets and propose frameworks for registration, disclosure, and market conduct. These elements are designed to support fair and orderly operations across crypto platforms.
🚨NEW: Senate Banking is working on principles for its version of a crypto market structure bill — which will be the focus of next week’s subcommittee hearing led by @SenLummis. @SenatorTimScott told me yesterday he’s hoping to hold a full committee hearing within the next… https://t.co/2Mkp4xzimO
— Eleanor Terrett (@EleanorTerrett) June 18, 2025
Senate staff have been meeting with regulators and industry stakeholders to finalize provisions for the discussion draft. The committee is working on closing gaps in current federal oversight of digital assets, including addressing risks from noncompliant exchanges and unregistered offerings.
Senator Tim Scott has expressed support for advancing a full committee hearing by next month. The committee aims to allow public and expert input on the bill’s contents. This process is expected to guide the final language of the legislation.
GENIUS Act Advances Stablecoin Regulation
The Senate recently passed the GENIUS Act, which establishes rules for the stablecoin market. The bill requires stablecoin issuers to maintain adequate reserves and submit to federal oversight. It passed with 68–30 votes and now moves to the House.
Proponents argue that stablecoin regulation is necessary to protect financial stability and build trust in digital payment systems. The GENIUS Act sets minimum reserve standards and outlines eligibility requirements for issuers. It focuses on operational transparency and consumer protections.
Critics have raised concerns about gaps in the bill’s coverage of broader crypto market risks. Some lawmakers insist that stablecoin laws and full crypto market regulation must proceed together. They say that without both acts, the regulatory framework will remain incomplete.
