[Crosscheck 2] Edit Korean news

[Revised] The U.S. Senate Banking Committee has formally explained the purpose and key issues of the CLARITY bill, which seeks to overhaul the regulatory framework for the broader crypto-asset market.

On the 13th (local time), the committee said via its official channels that the CLARITY bill—legislation on crypto market structure—was crafted after months of bipartisan negotiations and consultations with regulators, law enforcement authorities, academia and industry. The committee said it plans to move soon to the markup process for the bill.

The committee noted that the digital-asset market is currently operating under a fragmented supervisory regime and outdated regulation. It said the CLARITY bill aims to establish clear and enforceable regulatory standards with the goals of investor protection, attracting innovation to the United States, and strengthening national security.

The bill, grounded in existing securities-law principles, would clearly distinguish between securities and commodities among digital assets. Digital assets deemed securities would be subject to the Securities and Exchange Commission’s (SEC) disclosure requirements, resale restrictions and anti-circumvention rules, while the SEC’s enforcement authority would be preserved. The committee said claims that investor protections would be weakened are not accurate.

It also rejected criticism related to risks to the financial system. The committee said the CLARITY bill is focused on preventing a second FTX by establishing a regulatory framework that can punish fraud, price manipulation and market abuse. It argued that the absence of regulation poses a greater risk to investors and the financial system.

On jurisdiction, the bill stipulates a clear delineation of roles between the SEC and the Commodity Futures Trading Commission (CFTC), and the creation of a joint advisory committee to prevent regulatory gaps and evasion. On illicit finance and national security, it would strengthen implementation of anti-money-laundering, counter-terrorist-financing and sanctions compliance, and grant the Treasury Department authority to address high-risk overseas activity.

Regarding decentralized finance, it presents an approach that targets illegal conduct while protecting legitimate software development and innovation. It said developers who do not control customer funds would not be treated as financial intermediaries, and that it would neither ban private wallets nor criminalize developers.

The Senate Banking Committee also drew a line against claims that the CLARITY bill represents industry interests. It stressed that the bill is intended to reduce uncertainty and strengthen regulatory enforcement while simultaneously protecting investors, the financial system and national security.