According to relevant information, significant progress has been made in the CLARITY Act of the Digital Asset Markets in the United States. The bill aims to reshape the regulatory framework for cryptocurrencies in the United States.
This Tuesday, the House Agriculture Committee of the United States passed the bill with 47 votes in favor and 6 against. Immediately following on Wednesday, the House Financial Services Committee also advanced the bill with a result of 32 votes in favor and 19 votes in favor. The approval of these two committees is an important milestone for the bill, as it needs to pass these two committees before it can be submitted to the entire House of Representatives for a vote. Subsequently, the two different versions of the bill will be combined into one text for review by the entire House of Representatives.
If the bill is passed by Congress, it will officially adjust regulatory powers, transferring some regulatory powers from the U.S. Securities and Exchange Commission (SEC) and establishing the Commodity Futures Trading Commission (CFTC) as the main regulatory agency for most digital assets. However, if cryptocurrency issuers wish to sell their products directly to institutional investors, they can still choose to register with the SEC.
French Hill, the chairman of the House Financial Services Committee, said that blockchain technology and digital assets are reshaping the future of American finance, and Congress has a historic opportunity to provide a clear regulatory framework to unlock this innovative potential. Ji Kim, the chairperson and acting CEO of the Crypto Innovation Council, said that this is an important step towards clarifying crypto rules, which helps define the roles of the SEC and CFTC, protect self-custody and safeguard consumers’ rights and interests.
However, the bill has also faced some critical voices. Some Democrats strongly criticized the bill during the discussions of the Financial Services Committee, arguing that it might pave the way for corruption. They also expressed concerns about former President Donald Trump’s cryptocurrency-related projects. Some people, including Congressman Sam Liccardo, who supports cryptocurrencies, questioned the loopholes in the bill, which might lead some companies to claim to be decentralized finance projects to evade regulation. Republicans, on the other hand, defended the bill, emphasizing that regulatory status would be based on the functions of the platforms rather than their names. They rejected several amendments proposed by the Democratic Party, including provisions that prohibit the president from participating in crypto projects and prohibit the use of taxpayers’ funds to rescue token issuers.
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