U.S. Senate Banking Committee Unveils CLARITY Act Draft to Define SEC’s Role in Crypto Regulation

The Senate Banking Committee has released a draft of the CLARITY Act, seeking public input on how the SEC regulates digital assets. The bill, already passed by the House, now moves toward Senate review and potential signing by President Trump.Key TakeawaysSenate Banking Committee releases CLARITY Act discussion draft, introducing the concept of “affiliated assets.”Public input open until early August before Senate consideration.House already passed the bill, awaiting Senate approval before heading to President Trump’s desk.Coordination between Senate Banking and Agriculture Committees expected as Democrats’ support will be key to final passage.Senate Draft Puts Focus on SEC’s Crypto OversightOn July 27, the U.S. Senate Banking Committee released a discussion draft of the CLARITY Act, aiming to clarify how the Securities and Exchange Commission (SEC) regulates digital assets.The draft introduces the concept of “affiliated assets” — a framework that could help determine when digital tokens fall under securities rules.The committee is now inviting public feedback through early August, a move seen as critical for shaping the bill before formal Senate debate.House Passed Bill, Trump Signals SupportThe House of Representatives passed its version of the CLARITY Act last week. Once the Senate approves the legislation, it will move to President Trump for signing.The White House crypto chief confirmed Trump supports the bill, framing it as part of his campaign pledge to deliver regulatory clarity for the digital asset sector.What Comes Next?Rashan Colbert of the Crypto Innovation Council said the Senate might not move identically to the House but emphasized that the Banking and Agriculture Committees will likely coordinate on broader crypto market structure legislation.Analysts say Democratic lawmakers’ support will be crucial for the bill’s passage in the Senate.