The Senate Banking Committee released the draft text of the CLARITY Act on Wednesday, ahead of a scheduled markup on Thursday. The bill includes two key provisions that would sharply limit the SEC's jurisdiction over digital assets: a January 1, 2026 ETF cutoff, which would exempt any token that was the principal asset of a U.S.-listed spot ETF by that date from securities classification (notably covering Bitcoin and Ethereum), and a 60-day auto-certification window, where a token issuer can submit evidence that their token is not a security; if the SEC does not object within 60 days, the filing becomes legally effective. These provisions together would permanently exempt Bitcoin and Ethereum from federal securities law, regardless of future enforcement priorities. The bill reflects months of bipartisan negotiations, including a last-minute compromise on stablecoin yield restrictions that resolved a previous stalemate when Coinbase pulled support in January. The committee vote Thursday would advance the bill out of committee, though it still needs Democratic support to pass the full Senate. Analysts warn that the 60-day window risks "speed superseding scrutiny" and that the ETF cutoff "conflates market acceptance with legal status," potentially creating a two-tier regulatory system.

Key facts

• Draft bill would permanently exempt Bitcoin and Ethereum from SEC securities classification.
• ETF cutoff date of January 1, 2026 bars SEC from classifying any such token as a security.
• 60-day auto-certification window allows token issuers to gain non-security status if SEC does not object.
• Bill includes bipartisan compromise on stablecoin yield restrictions to gain support.
• Committee vote scheduled for Thursday; needs Democratic support for full Senate passage.

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