The US Senate is scheduled to discuss the long-awaited crypto bill, known as the CLARITY Act, next week.
The bill is seen as a significant step towards providing legal clarity to the country’s digital asset industry.
If passed, the CLARITY Act would define the jurisdiction of financial regulators over crypto assets, including determining whether a token is categorized as a security, commodity or other category.
The crypto industry believes the law is important to resolve the regulatory uncertainty that has long plagued crypto companies in the US.
The chairman of the US Senate Banking Committee, Tim Scott, said a special session to discuss the bill will be held on May 14 in Washington D.C.
The CLARITY Act also touches on the issue of stablecoins, which are digital assets backed by the US dollar.
Under the proposal, rewards for users who only passively hold stablecoins would be prohibited because they are considered similar to bank deposits.
However, rewards for using stablecoins in payment transactions would still be allowed.
The proposal has sparked a dispute between crypto companies and the banking industry.
Banks fear that consumers will move their savings to crypto platforms, reducing deposits in the traditional banking system and undermining financial stability.
At the same time, crypto companies have argued that restrictions on stablecoins could stifle competition and innovation in the digital finance industry.
Although the US House of Representatives passed a version of the bill last year, the CLARITY Act still needs Senate support before it can be sent to President Donald Trump for final approval.
