Another ICO Boom? What the Senate’s Market Structure Bill Means for Crypto Startups

Key Points

1. The Senate bill, shorter than the House's CLARITY Act, introduces an 'ancillary asset' framework to classify certain tokens as non-securities, exempting them from SEC oversight.

2. The legislation seeks to reduce legal barriers for crypto developers, addressing the murky regulatory environment between securities and commodities.

3. Critics, like Amanda Fischer of Better Markets, argue the bill could lead to excessive exemptions for crypto, potentially undermining investor protections.

4. The bill includes clauses restricting SEC-exempted crypto from offering certain benefits to purchasers, raising concerns among some industry participants.

5. The Senate aide emphasized that the bill aims to align with the House's CLARITY Act, with final classifications of tokens to be determined by SEC and CFTC rulemaking post-passage.