The CLARITY Act, a bill concerning the regulation of the cryptocurrency market in the United States, may be passed by the middle of this year. Analysts at JPMorgan believe that this law will be an important step towards establishing clear rules for the operation of cryptocurrency companies and market participants.
This is reported by Finway
Expected changes in the regulatory environment
Experts estimate that the passage of the CLARITY Act will provide transparency and certainty for the entire digital asset industry, as well as put an end to the ambiguous approach to regulation through litigation and enforcement. According to specialists, this could serve as a catalyst for further development of the crypto market and attract new institutional investors.
“If it is passed, it will change the market structure by providing regulatory certainty, ending ‘regulation by enforcement’, promoting tokenization, and expanding the participation of institutional investors,” they noted.
Key benefits of the bill
JPMorgan highlights eight main positive factors that could arise following the passage of the CLARITY Act:
- Token classification: The bill proposes to divide digital assets into digital commodities, which will be regulated by the U.S. Commodity Futures Trading Commission, and digital securities, which will fall under the SEC’s oversight.
- Grace period for innovation: New projects will be able to raise up to $75 million per year without full registration with the SEC on the path to decentralization, which will stimulate the development of startups and venture initiatives in the U.S.
- Ability to change token status: Tokens that achieve a sufficient level of decentralization will be able to transition from securities status to commodity status. This will pave the way for expanded secondary trading and participation by institutional players.
- Clear standards for crypto intermediaries: Requirements for registration and asset custody will be established for intermediary companies in the crypto market.
- Promotion of tokenization: Tokenized financial instruments will remain subject to existing securities legislation.
- Exemptions for miners and developers: Certain categories of participants, including miners and developers, may be exempt from broker reporting during the development stage in the absence of custodial activities.
- Tax innovations: Exemptions for small crypto payments are proposed, as well as the definition of the taxation process for staking, which will help stimulate the use of cryptocurrencies and make the profitability of such operations more transparent.
- Competition between stablecoins and deposits: New provisions may enhance the attractiveness of tokenized deposits and create additional pressure on the stablecoin market.
It is worth noting that previously, reaching a compromise on the CLARITY Act was complicated by the position of the banking lobby, which led to delays in advancing the bill.