House leaders introduced the Digital Asset Market Clarity Act on Thursday, a bipartisan effort to define regulatory responsibilities for cryptocurrencies and digital assets. The bill aims to resolve long-standing ambiguity between the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), which has led to confusion and enforcement clashes in the fast-evolving sector.
Co-sponsored by House Majority Whip Tom Emmer (R-MN) and supported by three Democrats, the legislation proposes a market structure where digital asset issuers would register offerings under SEC supervision, while most secondary market activity would fall under CFTC jurisdiction. It also mandates segregation of customer funds, conflict-of-interest disclosures, and clearer protections—areas that failed in cases like the 2022 collapse of FTX.
Notably, Section 203 reflects the SEC v. Ripple court ruling, affirming that secondary transactions of certain tokens may not qualify as securities.
Industry group Stand with Crypto praised the bill, calling it a “common-sense framework.” Though a similar bill passed the House last session, it stalled in the Senate. Lawmakers hope this updated version advances further.
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