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The U.S. House has cleared the CLARITY Act, a bill that aims to provide a comprehensive framework for the cryptocurrency sector. The act now heads to the Senate for consideration before advancing it to Trump’s desk.
The CLARITY Act proposes to define digital assets clearly, distinguishing between securities and commodities. It also suggests that the SEC (Securities and Exchange Commission) will handle crypto assets classified as ‘securities.’ On the other hand, the CFTC (Commodity Futures Trading Commission) will be responsible for decentralized crypto assets and trading.
Another provision of the bill is the exemption of DeFi projects from oversight, but only if they agree to submit proper disclosures when necessary. This has garnered criticism from consumer protection agencies such as Americans for Financial Reform (AFR), who claim that it “has taken the crypto industry’s deregulatory agenda from bad to worse.” They argue that this exemption will leave retail investors on DeFi platforms vulnerable and enable even more predatory activities.
On the other hand, supporters of the bill see it as a significant step forward in establishing clear regulations for the cryptocurrency sector. House Speaker Mike Johnson summarized the bill by stating that it aims to make crypto a core pillar of the U.S. economy and ensure America remains a global leader in this dynamic industry.
For some time now, there have been concerns about the lack of clarity regarding token classification, which has led to enforcement actions taken against crypto firms. However, this bill is seen as a major shift away from such an approach, instead providing a clear structure for the sector. Retail users will also benefit from enhanced disclosure requirements for brokers and projects.
While there are some reservations about the impact of this act on policy decisions in the cryptocurrency space, it remains to be seen how it will influence the markets and the future of the crypto industry as a whole.
Source: ambcrypto.com
