The Crypto Market Structure Bill, also known as the CLARITY Act, is on the verge of being passed as stated by Senator Lummis. This development is viewed as a significant catalyst for the cryptocurrency markets.

“We’ve come so far, and we are close to a bipartisan legislation that will stand the test of time,” said Wyoming Senator Cynthia Lummis on Wednesday.
Translation: “We have made great progress and are nearing a bipartisan bill that is likely to endure.”

Recent Developments

Senator Lummis noted that the industry has evolved considerably in the last five years, referencing events such as the collapse of FTX and market volatility. Senator Tim Scott mentioned that the crypto market structure proposal is anticipated to advance to Senate discussions imminently. The Senate has earmarked January 15 for marking up the Act.

Key Features of the Bill

• Establishes a digital commodities framework under the Commodity Futures Trading Commission (CFTC).
• Classifies major cryptocurrencies like Bitcoin and Ether as commodities.
• Limits the Securities and Exchange Commission’s (SEC) authority to regulating securities, enhancing retail market oversight.

Senator Scott expressed optimism about the bill’s passage through the committee and the Senate, aiming for the President’s signature.

Expert Opinions

Blockchain betting platform Kalshi has assigned probabilities of 20% for the bill becoming law by April, escalating to 74% by year’s end.

“I’m cautiously optimistic,” remarked Bitwise CIO Matt Hougan, emphasizing that without this legislation, the current pro-crypto regulatory stance may change with a new administration.