The lobbying branch of Coinbase, in conjunction with numerous cryptocurrency entities, has called on US House representatives to swiftly approve a significant piece of legislation in their upcoming meeting that would define the regulatory framework for the cryptocurrency sector.
In a letter dispatched on Monday, Stand With Crypto alongside 65 cryptocurrency advocacy organizations and businesses urged House representatives to support the Digital Asset Market Clarity Act — commonly referred to as the CLARITY Act.
“We recognize that there have been attempts to politicize cryptocurrency legislation, but with cryptocurrency significantly transforming the global economy, the U.S. risks lagging unless we implement pro-cryptocurrency policies that thoroughly adopt blockchain technology,” it stated.
The CLARITY Act delineates the responsibilities of the Commodity Futures Trading Commission and the Securities and Exchange Commission in overseeing cryptocurrency. It allocates the majority of regulatory power over cryptocurrency to the CFTC, though the SEC would oversee products like cryptocurrency-related securities.
US crypto dominance “declining,” groups claim
The letter from the groups, which includes notable non-fungible token leaders OpenSea and Dapper Labs, remarked that there are “already indications of U.S. crypto dominance waning.”
These organizations indicated that a “lack of uniform regulations impedes institutional uptake and innovation, driving talent and enterprises to more cryptocurrency-friendly jurisdictions overseas.”
“We cannot afford to let indecision and ambiguity threaten our capability to secure America’s economic future,” it further stated. “Most importantly, the U.S. cryptocurrency sector requires market structure — ensuring there are explicit guidelines to provide the regulatory certainty needed for developers, users, and advocates to foster ongoing innovation.”
House to review CLARITY Act during “Crypto Week”
Republican leaders in the House indicated on Thursday that they would assess the CLARITY Act alongside two other cryptocurrency bills during the week that begins July 14, which they have termed “Crypto Week.”
House Speaker Mike Johnson stated that the chamber would also examine the Anti-CBDC Surveillance State Act, which prohibits central bank digital currency, and the stablecoin-regulating GENIUS Act.
The GENIUS Act is likely to be prioritized, as it has already cleared the Senate, and US President Donald Trump expressed last month his desire for the bill to be passed swiftly, before Congress adjourns for a month-long recess in August.
The CLARITY Act could be next on Trump’s desk, as it has now reached the full House following advancement from the House Financial Services Committee and the Agriculture Committee on June 10.
It still needs to navigate the Senate, and Senate Banking Committee Chair Tim Scott remarked last month that he aims to pass a cryptocurrency market structure bill “by the end of September.”
Democrats could obstruct CLARITY Act
Senate Democrats had thwarted Republicans’ attempts to rapidly pass the GENIUS Act to the House, citing worries regarding Trump’s increasing connections to cryptocurrency, and House Democrats have similarly voiced concerns about the CLARITY Act.
Maxine Waters, a prominent Democrat in the House Financial Services Committee, stated at a hearing in early June that the CLARITY Act was a “hurried, excessively intricate bill” that would exempt “some of the riskiest activities” within cryptocurrency.
“Validating Trump’s crypto scheme is far from the only troubling aspect of this ambiguous and reckless legislation,” she asserted, referencing the Trump family’s increasing wealth from their cryptocurrency endeavors.
Trump has allegedly increased his net worth by at least $620 million through his and his family’s cryptocurrency activities, which now encompass a crypto trading platform, a stablecoin, a crypto mining operation, NFTs, and various tokens.
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