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<p class="is-style-lead">Amid ongoing legal battles between the U.S. Securities and Exchange Commission (SEC) and several cryptocurrency organizations, a bipartisan effort led by majority whip Tom Emmer and representative Darren Soto has re-introduced the Securities Clarity Act. </p>



<p>The act, initially presented in 2020, aims to <a href="https://crypto.news/sec-urges-court-to-reject-coinbases-demand-for-regulatory-clarity/">demarcate</a> a clear line between commodities and securities, thereby refining regulatory legislation concerning digital assets.</p>



<p>Emmer asserts that the current law&#8217;s lack of distinction between an asset and the securities contract it may be part of, compromises American innovation. </p>



<p>The <a href="https://emmer.house.gov/_cache/files/4/4/44640083-8c24-432d-964e-b0dad3570b6f/A4BFD808D87EF1A7EAB1C7C00FD811C4.signed-bill-text.pdf" data-type="URL" data-id="https://emmer.house.gov/_cache/files/4/4/44640083-8c24-432d-964e-b0dad3570b6f/A4BFD808D87EF1A7EAB1C7C00FD811C4.signed-bill-text.pdf" target="_blank" rel="noreferrer noopener">new legislation</a>, if enacted, will regard an &#8220;asset sold pursuant to an investment contract, whether tangible or intangible (including an asset in digital form),&#8221; as not a security following its sale or transfer. </p>



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<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">Today, I introduced the Securities Clarity Act with <a href="https://twitter.com/RepDarrenSoto?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@RepDarrenSoto</a>. This bill clarifies the regulatory classification of digital assets and provides market certainty for innovators and clear jurisdictional boundaries for regulators. <a href="https://t.co/xgsLAm2Yhh" target="_blank">pic.twitter.com/xgsLAm2Yhh</a></p>&mdash; Tom Emmer (@GOPMajorityWhip) <a href="https://twitter.com/GOPMajorityWhip/status/1659291641281146886?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">May 18, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<p>This will separate the &#8220;investment contract asset&#8221; from the securities offering it was initially part of, rendering the definition &#8220;technology neutral.&#8221;</p>



<p>The act has been proposed amidst a legal standoff between <a href="https://crypto.news/coinbase-takes-legal-action-against-sec/" data-type="URL" data-id="https://crypto.news/coinbase-takes-legal-action-against-sec/">Coinbase</a>, a prominent cryptocurrency exchange, and the SEC. </p>



<p>Earlier this year, the SEC served Coinbase with a Wells notice, essentially an alert for potential forthcoming action. In response, Coinbase has legally challenged the SEC for regulatory clarity. </p>



<p>The ongoing court proceedings recently compelled the SEC to reply to Coinbase&#8217;s claims.</p>



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<p>This week, the SEC addressed Coinbase&#8217;s appeal for significant regulatory changes, acknowledging the need for deliberation and the potential initiation of a rulemaking proceeding to address such matters. </p>



<p>This acknowledgment reveals the SEC&#8217;s recognition of the potentially significant impact on crypto assets and the <a href="https://crypto.news/market-cap/" data-type="URL" data-id="https://crypto.news/market-cap/">broader securities market</a>.</p>



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<iframe loading="lazy" title="Financial Services Committee hearing on regulatory gaps in digital asset market structure" width="1020" height="574" src="https://www.youtube.com/embed/__mOQda2Jzo?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
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<p>Meanwhile, in an ongoing case between the <a href="https://crypto.news/xrp-price-forecast-how-ripple-vs-sec-lawsuit-could-shake-up-crypto-markets/" data-type="URL" data-id="https://crypto.news/xrp-price-forecast-how-ripple-vs-sec-lawsuit-could-shake-up-crypto-markets/">SEC and Ripple</a>, another major player in the cryptocurrency arena, a court ordered the SEC to unseal the &#8216;Hinman docs.&#8217; These documents, including drafts and emails related to a speech by William Hinman over four years ago, could potentially sway the case in Ripple&#8217;s favor. </p>



<p>Hinman, in his speech, maintained that the SEC did not view <a href="https://crypto.news/price/ethereum/">ETH</a> as a security at that time. Ripple hopes to leverage this to understand why the SEC now categorizes <a href="https://crypto.news/price/xrp/">XRP</a>, its own cryptocurrency, as a security.</p>



<p>The bipartisan Securities Clarity Act, therefore, comes at a pivotal moment, aiming to provide much-needed clarity in the rapidly evolving field of <a href="https://crypto.news/us-sec-delays-ratification-of-digital-assets-definition/" data-type="URL" data-id="https://crypto.news/us-sec-delays-ratification-of-digital-assets-definition/">digital assets</a> and their intersection with securities law.</p>



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Bipartisan Securities Clarity Act re-introduced amid crypto regulatory challenges

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