The U.S. Senate will vote on the Clarity Bill (Digital Asset Market Clarity Act) on Tuesday. This bill, which is over 600 pages long, seeks to establish a regulatory framework for the cryptocurrency industry for the first time in U.S. history. The approval of this bill could bring a fundamental change to the cryptocurrency market, but its future heavily depends on the Senate votes.
Details of the Clarity Bill
The Clarity Bill officially refers to the division of oversight of the cryptocurrency industry between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). However, this bill gives the CFTC, which is a smaller regulatory body, more control than the SEC. Critics view this move as a way to escape heavier regulations on the cryptocurrency industry.
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The bill was passed in the House of Representatives last year but has faced serious opposition in the Senate. Senators need at least 60 votes in favor to pass this bill, meaning all 53 Republicans and at least seven Democrats or Independents must vote for it.
Challenges Facing the Bill
Opponents of the Clarity Bill, including Democrats, have pointed to an ethical clause in it aimed at preventing government officials from profiting from the cryptocurrency industry while in office. Senator Elizabeth Warren from Massachusetts has criticized this issue, believing that the clause is insufficient and cannot guarantee the prevention of conflicts of interest.
Additionally, the Department of Justice will be responsible for enforcing this ethical clause. This has raised concerns, as Democrats believe this agency cannot provide effective oversight over the sitting President, especially after the President announced that he and his family earned $1.4 billion from their cryptocurrency investments last year.
Republicans are trying to break this deadlock and pass amendments to the Clarity Bill. According to the new changes, federal officials and their spouses cannot disclose their digital currencies. This could effectively prevent the President from continuing his cryptocurrency activities, as he has also agreed to this condition in order to distance himself from his $TRUMP digital currency.
Efforts to pass the Clarity Bill, despite the significant costs the cryptocurrency industry has incurred to support it, still face serious obstacles. With the midterm elections approaching in early November, time is limited for this bill to be passed in Congress.
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Source: npr.org
