Senate Proposes RFI & CLARITY Acts to Define Crypto Regulation
Senate lawmakers have proposed two key bills—the Responsible Financial Innovation (RFI) Act and the CLARITY Act—to clarify crypto regulation and token classification. The RFI Act, led by Senators Scott, Lummis, Hagerty and Moreno, designates most digital tokens as commodities under CFTC oversight while preserving the SEC’s authority over securities. It sets limits on applying securities laws, invites public feedback on stablecoin rules, proposes custody frameworks, DeFi exemptions, anti-fraud measures, and safe harbors for transparent, decentralized projects. The CLARITY Act, sponsored by Senators Lummis and Gillibrand, would grant the CFTC sole authority over digital commodities such as Bitcoin (BTC) and Ethereum (ETH), define “digital commodity,” and require platforms handling them to register with the CFTC. Both bills aim to close regulatory gaps, reduce uncertainty, foster innovation and investor protection. Senate hearings are underway, with a final vote expected by September 30. Crypto traders should watch for evolving crypto regulation on stablecoins, custody and DeFi as clearer regulation could boost market confidence and institutional participation.
Bullish
This comprehensive regulatory push clarifies oversight, reduces legal uncertainty and signals that tokens like BTC and ETH will operate under defined rules. In the short term, clearer crypto regulation can boost trader confidence, lift trading volumes and spur price gains. Over the long term, stable frameworks for commodities, custody and DeFi are likely to attract institutional investors, supporting sustained market growth and positive price trends for major tokens.