The draft grants non-security status to tokens in ETFs by 2026, placing XRP, SOL and DOGE alongside Bitcoin and Ethereum. It draws a firm SEC–CFTC split, adds disclosure rules, and protects developers’ accurate public communications. Exchanges face stricter custody, surveillance, proof-of-reserves rules, with DeFi added to systemic risk oversight.
A new draft of the CLARITY Act surfaced this week in the U.S. Senate, outlining a revised crypto market structure. The proposal, released by the Senate Banking Committee, seeks to define regulatory oversight, asset classification, and exchange standards. Lawmakers introduced it ahead of scheduled markup hearings, aiming to address long-standing regulatory uncertainty through statutory rules.
ETF-Based Classification and Asset Status
Under the draft, cryptocurrencies included in exchange-traded products by Jan. 1, 2026, gain non-ancillary asset status. This classification would exempt them from Securities and Exchange Commission securities rules. Notably, the approach relies on ETF participation rather than token design.
Chairman Tim Scott’s proposal places XRP, Solana, and Dogecoin alongside Bitcoin and Ethereum. Litecoin, Hedera, and Chainlink also qualify under existing ETP listings. Consequently, these assets would receive equivalent regulatory treatment once the law takes effect.
According to industry observers, this structure establishes parity through regulated market inclusion. Jamie Elkaleh of Bitget Wallet said the framework regulates crypto through financial product exposure. Similarly, Jordan Jefferson of DogeOS noted the clarity expands which institutions can legally engage with specific tokens.
Clear Agency Roles and Disclosure Standards
The draft also defines regulatory jurisdiction. Securities fall under the SEC, while commodities move to the Commodity Futures Trading Commission. This separation aims to end overlapping enforcement disputes between agencies.
Additionally, the bill introduces ancillary asset disclosure requirements. Projects must publish details on token creation, ownership concentration, governance, system mechanics, and risks. Larger fundraises exceeding $25 million require audited financial statements and verified treasury disclosures.
The proposal also shields software developers. Builders may discuss roadmaps and features, provided statements remain accurate. This provision seeks to reduce legal exposure tied to public communications.
Exchanges, Market Integrity, and DeFi Oversight
The legislation imposes registration and custody standards for crypto exchanges. Platforms must segregate customer funds, implement surveillance systems, and prevent manipulation. Wash trading, spoofing, and front-running would become criminal offenses.
Exchanges must also provide proof of reserves through regular verification. This measure targets failures linked to undisclosed liabilities. Furthermore, the bill formally incorporates decentralized finance into systemic risk and cybersecurity planning.
The Senate Banking Committee plans to debate amendments during Thursday’s markup session. Joshua Chu of the Hong Kong Web3 Association said political dynamics, including upcoming elections, remain a decisive factor.

