U.S. Senate Adds Digital Asset Market Clarity Act to Legislative Calendar
'Biggest regulatory bill since Dodd-Frank' added to Senate calendar
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The Digital Asset Market Clarity Act, known as the CLARITY Act, has been added to the U.S. Senate calendar, aiming to establish a regulatory framework for cryptocurrencies. It seeks to resolve disputes between the SEC and CFTC and has sparked controversy over stablecoin yields, with significant backing from both Republicans and Democrats.
- 01The CLARITY Act aims to create a comprehensive regulatory framework for cryptocurrencies, addressing SEC and CFTC jurisdictional disputes.
- 02The House of Representatives passed its version of the legislation in July 2022, but Senate approval has been complicated by concerns over stablecoin yields.
- 03Stablecoins, pegged to real-world assets like the U.S. dollar, are at the center of a conflict between the banking and crypto industries.
- 04Coinbase's chief policy officer stated that the CLARITY Act represents important consumer protections and will enhance the financial system's responsiveness.
- 05The act is considered the most significant financial regulatory bill since the Dodd-Frank Act of 2010, with bipartisan support expected.
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The Digital Asset Market Clarity Act, commonly referred to as the CLARITY Act, was added to the U.S. Senate legislative calendar on June 1, aiming to establish a regulatory framework for cryptocurrencies. This legislation seeks to resolve ongoing jurisdictional disputes between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The House of Representatives had previously passed its version in July 2022, but Senate approval has faced challenges, particularly regarding provisions related to yields on stablecoin holdings. Stablecoins, which are cryptocurrencies pegged to stable assets like the U.S. dollar, have raised concerns within the banking sector, fearing that customers may prefer them over traditional savings accounts. Coinbase's chief policy officer highlighted the act as a potential bipartisan achievement, emphasizing its consumer protection aspects. The CLARITY Act is viewed as the most significant regulatory legislation since the Dodd-Frank Act, which was enacted in response to the 2008 financial crisis. With support from both parties, the act's progress marks a pivotal moment for the cryptocurrency landscape.
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The CLARITY Act could reshape the regulatory landscape for cryptocurrencies, affecting how banks and financial institutions interact with digital assets.
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