That is, if it can survive fierce opposition and actually become law. On Tuesday, the Senate will hold a key procedural vote on the Clarity Act — officially called the Digital Asset Market Clarity Act — which has been at the top of the crypto sector's wish list for years. The massive bill — which stretches over 600 pages — would establish the first regulations for the crypto sector in U.S. history.
But opponents see this as the industry's attempt to encode into law a set of rules that are far too lenient on the industry, without enough safeguards. A version of the bill already passed the House last year, but it has faced a long and torturous road in the Senate as opponents have fought tooth and nail. Here's 5 key things to know about the Clarity Act — and why opponents are fighting so hard to prevent it from ever being passed.
Just like with most things dealing with crypto, the details are complicated and a bit geeky. But it effectively establishes a clear legislative framework for the crypto sector for the first time in U.S. history. That would mark a sea change from today, where crypto regulation can change depending on who controls the White House.
Under President Biden, for example, the Securities and Exchange Commission took an aggressive approach against the crypto sector. But that changed radically under President Trump with the agency now led by Paul Atkins, a former adviser to the industry. "Tens of millions of Americans are investing in products that don't have clear regulatory oversight," said Ryan VanGrack, vice chair of Coinbase, a major crypto firm.
"That's an abomination." "Whether you love crypto or you hate crypto, you should want it regulated," he added. "And this is the best opportunity we have ever had to do just that." The crypto sector has also grown beyond Bitcoin to include all kinds of cryptocurrencies – such as meme coins. Meanwhile, the technology underpinning Bitcoin and some other cryptocurrencies are also starting to be adopted by the broader financial sector.
The Clarity Act would formally split oversight of the crypto sector between the SEC and the Commodity Futures Trading Commission. But — controversially— it would give the CFTC, a far smaller regulator, the majority of control. Critics say handing the CFTC the bulk of the reins is the crypto sector's way to avoid heavy regulatory scrutiny.
Extract — continue reading at the source.
