The Senate Banking Committee released the draft text of the CLARITY Act early Wednesday, setting up a pivotal vote on Thursday that could permanently exempt Bitcoin and Ethereum from federal securities laws.
Committee Chairman Tim Scott, Senator Cynthia Lummis, and Senator Thom Tillis unveiled the legislation after nearly a year of bipartisan negotiations. The bill stalled in January after Coinbase pulled support over stablecoin yield restrictions, but recent compromises revived the effort.
Two key provisions sharply limit the SEC's jurisdiction over digital assets:
First, any token that served as the principal asset of a U.S.-listed spot ETF as of January 1, 2026 cannot be classified as a security. Bitcoin and Ethereum both had ETFs trading by that date.
Second, token issuers can submit evidence to the SEC that their token is not a security. If the agency does not object within 60 days, the filing becomes legally effective-effectively a "silence equals safe harbor" rule.
Critics warn the 60-day window could let borderline cases slip through, and that date-based exemptions may ignore how assets evolve over time. Supporters argue the bill delivers regulatory certainty that institutional players have been waiting for.
The committee vote Thursday would advance the bill out of committee, though Democratic support will be needed to pass the full Senate.