The U.S. Senate Banking Committee released updated text for the long-debated Clarity Act this week, pushing forward a bill that could establish a broader federal framework for regulating digital assets in the United States. The legislation that unveiled ahead of a key committee hearing, marks another major step in Congress’ years long effort to define how cryptocurrencies should be overseen by federal regulators.

The revised proposal’s intention is to settle one of the crypto industry’s biggest unresolved questions of whether digital assets should fall under securities or commodities laws? Supporters say the bill would reduce regulatory confusion that has driven some crypto firms overseas, while critics warn certain…