The proposed CLARITY Act in the USA seeks to establish a clear regulatory framework for digital assets. It has garnered both support and criticism among lawmakers.
Objectives of the CLARITY Act
The CLARITY Act aims to eliminate regulatory uncertainties by assigning primary oversight of digital assets to the Commodity Futures Trading Commission (CFTC). Meanwhile, assets classified as securities will fall under the Securities and Exchange Commission (SEC). This approach is expected to resolve long-standing conflicts in the regulation of the crypto industry.
Support and Opposition
The bill has been supported by a coalition of 65 organizations, including major players in the NFT space, such as OpenSea and Dapper Labs. They stress that the lack of a unified national framework drives startups and investors out of the USA to countries with clearer rules. The letter sent to Congress indicated that the USA risks losing its position in the global economy due to regulatory uncertainty.
Response to Criticism and Next Steps
Despite garnering support, the bill has faced backlash from Democrats. House Republican leaders announced July 14 as 'Crypto Week', during which discussions surrounding the bill are planned. Detractors, including Congresswoman Maxine Waters, have referred to the bill as 'Trump's crypto con' and expressed concerns about the weakening of oversight on high-risk digital asset activities.
The CLARITY Act continues to be debated in the US Congress, with its fate being determined amid sharp discussions between supporters and opponents of this regulatory approach to digital assets.
