The U.S. Senate holds a procedural vote on the Digital Asset Market Clarity Act on Tuesday, a measure requiring 60 votes to advance. The bill, which spans over 600 pages, seeks to establish the first federal regulation of the U.S. crypto sector after a version cleared the House last year.
To pass, the legislation needs support from all 53 Senate Republicans and at least seven Democrats. Sen. Elizabeth Warren, D-Mass., has criticized the draft, stating it fails to adequately protect investors, the financial system, and national security. In response, Republicans assert the latest version includes more than 100 revisions requested by Democrats, including stricter ethics guidelines.
Felix Shipkevich, a law professor at Hofstra University and founder of a New York City-based fintech-focused law firm, argues the legislation’s benefits outweigh its drawbacks. He explains that the bill draws a line between the jurisdiction of the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, specifying when a digital asset is treated as a commodity versus a security. Shipkevich believes this clarity will guide market participants toward registration with the appropriate federal agency.
Braden Perry, partner at the Kennyhertz Perry law firm in Kansas City and former CFTC senior trial attorney, emphasizes that the current regulatory approach relies on enforcement rather than clear statutes. Perry notes that a statute defining whether the SEC or CFTC is the regulator resolves a jurisdictional issue litigated for a decade. However, he warns that the bill grants the CFTC a massive new retail market without matching congressional funding, potentially creating a gap between regulatory authority and practical enforcement.
Faryar Shirzad, chief policy officer at Coinbase, states that passage would align the U.S. with other G20 countries by establishing a legislative framework for crypto markets. He argues this provides developers and traditional financial companies with the regulatory certainty needed to build the next generation of finance.
Regarding impact on holders, Shipkevich notes that cryptocurrency holders are unlikely to see immediate effects. He anticipates a short-term catalyst for new institutional crypto projects, predicting that regulatory clarity will encourage institutions to invest more heavily in the sector.
Perry suggests the most visible change for average holders would be platform registration requirements, which mandate keeping customer assets separate from company funds. He cites the FTX collapse as an example of the failure this provision addresses. While Perry cautions that the bill will not increase bitcoin prices or eliminate volatility and scams, he argues that legal certainty will eventually attract pension funds, banks, and asset managers, leading to deeper markets and less volatile price action.