US Crypto Regulation Evolves: GENIUS & CLARITY Acts, SEC Staking Clarifications, and More

The United States is witnessing significant developments in the regulatory framework for cryptocurrencies. Recent updates include the advancement of the GENIUS Act for stablecoins and the introduction of the CLARITY Act for digital assets, according to a16z crypto. These legislative efforts aim to establish clearer guidelines for the burgeoning crypto industry.

GENIUS and CLARITY Acts

The Senate has moved forward with the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which proposes a structured regulatory framework for payment stablecoins. The procedural motion was approved with a 66–32 vote, setting the stage for a full Senate debate. In parallel, the Digital Asset Market Clarity (CLARITY) Act was introduced by House Committee on Financial Services Chair French Hill. This Act seeks to create a market structure regulatory framework specific to digital assets.

SEC’s Stance on Staking

The Securities and Exchange Commission (SEC) has recently issued a statement clarifying that certain proof-of-stake blockchain protocol activities do not constitute the offer and sale of securities. This clarification, supported by Commissioner Hester M. Peirce but criticized by Commissioner Caroline A. Crenshaw, is a significant development for stakeholders in the crypto industry who engage in staking activities.

401(k) Plan Guidance Update

The Department of Labor’s Employee Benefits Security Administration has rescinded a previous compliance release from 2022, which had advised fiduciaries against including cryptocurrency options in 401(k) retirement plans. This change could potentially open the door for more crypto investment options within retirement planning.

Department of Justice Actions

The Department of Justice (DOJ) has been active in addressing crypto-related crimes, charging individuals involved in fraudulent schemes and cyber-enabled racketeering conspiracies. Notably, the DOJ charged 12 individuals with a racketeering conspiracy that involved stealing cryptocurrency-related databases and netted over $263 million.

International Developments

Globally, regulatory actions continue to evolve. In Hong Kong, the Legislative Council has passed the Stablecoins Bill, establishing a licensing regime for stablecoin issuers. Meanwhile, in Austria, Bybit has secured a Markets in Crypto-Assets Regulation license, marking a significant step in its European expansion.

These developments indicate a growing recognition of the need for comprehensive regulatory frameworks to support and regulate the rapidly evolving crypto industry. As legislative and regulatory bodies continue to define the rules, the landscape for digital assets is poised for further transformation.

For the original source, visit a16z crypto.

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