Today, the House Committees of Financial Services and Agriculture passed the bipartisan CLARITY Act (H.R. 3633), setting it for a full floor vote next. The financial committee advanced the measure with a 32-19 vote, agriculture committee passed it with a 47-6 vote.
Representative Maxine Waters voiced concerns while warning that certain provisions in the bill can lead to a conflict of interest. Her comment indicated the ties between political leaders and the crypto industry.
Brad Sherman stated that the bill could lead to industry bailouts and regulatory arbitrage. Former CFTC Chairman Timothy Massad called the CLARITY Act ‘complex’ while stating that the bill has expanded confusion rather than resolving the issues of crypto regulatory ambiguity.
After seeking approval from both committees, the CLARITY Act will proceed to the full House for votes and arguments. And if it is ultimately enacted, then it will become the first comprehensive law in the US for a crypto and digital assets regulatory framework. While the US Senate remains uncertain, the upper chamber works on enhancing digital asset law.
The CLARITY Act will clarify roles by defining “digital commodities” (under CFTC oversight, including most cryptocurrencies and DeFi spot markets) and “investment contract assets” (under SEC, focusing on how assets are sold).
Critics worry about potential conflicts of interest, regulatory arbitrage (creating minimal utility blockchains for CFTC oversight), reduced financial safeguards, and the bill’s complexity hindering effective regulation.
The CFTC will become the primary regulator for digital commodities, overseeing exchanges and brokers. The SEC will retain authority over investment contract offerings and enforce anti-fraud rules, particularly for stablecoins.
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