Senate Republicans Unveil Expanded CLARITY Act Framework With $300 Threshold and Ancillary Assets to Address Crypto Regulatory Gaps

Senate Republicans, led by Cynthia Lummis and John Thune, have unveiled an expanded framework for the CLARITY Act, aiming to establish a clearer regulatory structure for the U.S. cryptocurrency market. The proposal, introduced alongside Senate Banking Committee Chairman Tim Scott and other GOP allies, builds on a House-passed version of the bill and seeks to address longstanding ambiguities in digital asset oversight. Central to the draft is a $300 de minimis threshold for untaxed crypto transactions, designed to reduce compliance burdens for small-scale investors while refining the roles of the SEC and CFTC to minimize jurisdictional conflicts.

The legislation introduces the concept of “ancillary assets,” a new token category exempt from securities law, and directs the SEC to implement Regulation DA. This would allow token issuers to raise up to $75 million annually over four years without registering with the agency. A Request for Information (RFI) is also included, seeking industry input on issues such as custody and illicit finance. The bill incorporates elements from the recently enacted GENIUS Act, emphasizing investor safeguards and innovation in fintech, and aligns with broader efforts to future-proof the sector against risks like fraud.

Key provisions include the BITCOIN Act, which aims to establish a federal digital asset reserve strategy, and the Anti-CBDC Surveillance Act, restricting federal use of central bank digital currencies for surveillance. These measures reflect a strategic push to harmonize innovation with privacy protections while ensuring compliance with anti-money laundering standards. Lummis, a vocal advocate for balanced crypto policies, has positioned the bill as a response to the sector’s rapid evolution, following unsuccessful attempts to integrate similar incentives into broader congressional reconciliation packages.

The bipartisan effort, supported by both House and Senate Republicans, underscores a rare consensus on the need for regulatory clarity. By setting a $300 reporting threshold and streamlining oversight mechanisms, the legislation aims to create a competitive framework for U.S. crypto innovation. However, challenges remain in reconciling overlapping agency mandates and addressing unresolved tensions between regulators. The final version of the bill, expected to undergo further revisions, could serve as a foundational step in reshaping federal oversight of digital assets, balancing investor protection with the industry’s growth potential.

Analysts suggest the expanded CLARITY Act addresses critical gaps in defining non-security tokens and simplifying compliance for small transactions. While the proposed framework signals a shift toward structured regulation, its success will depend on resolving jurisdictional overlaps and maintaining stakeholder confidence. As the U.S. Treasury and Federal Reserve continue to advocate for cautious engagement with crypto, the Senate’s revised blueprint highlights growing recognition of the sector’s disruptive potential and the urgency of establishing a cohesive regulatory environment.