The House of Representatives passed the CLARITY Act (H.R. 3633), a bill to reform financial regulatory treatment of digital assets, including further definition of when digital tokens should be considered a financial security or digital commodity within the eyes of the law, with a strong bipartisan majority of 294-134 on July 17.
The bill is an updated version of similar legislation first crafted during the previous Congress, which also advanced out of the House with bipartisan support but did not receive a vote in the Senate. This time the Senate is expected to change portions of the bill, which is a major priority for cryptocurrency-related companies.
In addition to encoding new legal definitions for when an asset is a security or a commodity for regulatory purposes, the bill could also become a vehicle for tax treatment changes that have been proposed around digital assets in both the House and Senate.
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