Two Bills Promise a Crypto Revamp, But Not a Done Deal Yet

Manatt Financial Services Partner  wrote an article for Law360 discussing how the GENIUS and CLARITY Acts would regulate and impact digital assets, particularly around stablecoins, market structure, and digital commodities, if they are passed.  

The GENIUS, or Guiding and Establishing National Innovation for U.S. Stablecoins, Act would establish regulatory measures that would legitimize the stablecoin ecosystem, including by requiring stablecoin issuers to maintain a 1:1 reserve ratio with strict limits as well as audit requirements to enforce financial transparency. GENIUS passed the Senate June 17 with a large bipartisan margin of 68-30. The CLARITY, or Crypto Legal Accountability and Regulatory Integrity Through Yearly updates, Act would help streamline regulatory jurisdiction between the Commodity Futures Trading Commission and the U.S. Securities and Exchange Commission, including by providing new categories for digital commodities. “Digital asset platforms, stablecoin issuers and protocol developers should prepare for evolving regulatory and compliance requirements. The GENIUS and CLARITY Acts, if enacted, will reshape licensing, disclosures and permissible activities, including around custody, yield and airdrops,” Katz wrote.  

Read the full article .