CLARITY Act Advances with Bipartisan Support in House Committees

The CLARITY Act, introduced by Representative French Hill, has advanced significantly with bipartisan support from both the House Financial Services Committee and the House Agriculture Committee. The bill, which aims to establish a comprehensive regulatory framework for digital assets, was passed by the House Financial Services Committee with a vote of 32-19 and by the House Agriculture Committee with a vote of 47-6. This legislation is designed to address long-standing gaps in federal oversight of digital assets, providing clear guidelines for their regulation.

The CLARITY Act has received backing from various industry experts and stakeholders. Summer Mersinger, CEO of the Blockchain Association, emphasized the importance of clear and well-crafted rules for maintaining the United States' leadership in the global digital economy. Peter Van Valkenburgh, Executive Director of Coin Center, praised the bill for its thoughtful and comprehensive framework, which balances innovation with consumer protection and financial integrity. Ji Hun Kim, President and Acting Chief Executive Officer of the Crypto Council for Innovation, highlighted the need for clear rules to prevent American innovators from migrating offshore and to protect consumers from unregulated markets.

The DeFi Education Fund expressed gratitude to the co-sponsors and members of both committees for their efforts in bringing regulatory clarity to the digital asset ecosystem. The Decentralized Research Center noted the importance of a comprehensive legislative framework that provides clear and consistent rules for digital assets, supporting responsible innovation and financial inclusion. The Institute of Internal Auditors commended the legislation for its emphasis on sound governance and risk management processes, particularly in Sections 404 and 406, which contain essential investor protections.

The International Swaps and Derivatives Association praised the bipartisan effort to advance digital asset market structure legislation, which includes provisions to enhance liquidity and efficiency for both digital and traditional markets. Chris Dixon, Founder and Managing Partner of a16z crypto, highlighted the bill's consumer protections, long-term incentives for builders and investors, and its role in keeping crypto innovation within the United States. Nathan McCauley, Co-Founder and CEO of Anchorage Digital, expressed support for the bill's efforts to bring regulatory clarity to the digital asset market.

Coinbase and Kraken, two prominent cryptocurrency exchanges, also endorsed the CLARITY Act. Coinbase emphasized the bipartisan momentum building around the bill, while Kraken commended the leadership of the House Financial Services Committee and Agriculture Committee for advancing the legislation. The White House, however, has reportedly objected to a move by lawmakers to include a conflicts of interest provision in the CLARITY Act, which could potentially delay its progress.

The CLARITY Act is now set for a full floor vote in the House, marking a significant step towards establishing a clear regulatory framework for digital assets in the United States. The bill's passage through the committees with bipartisan support indicates a growing recognition of the importance of digital asset policy in maintaining American competitiveness and innovation. As the legislation moves forward, it will be crucial for lawmakers to address any remaining concerns and ensure that the final bill provides the necessary regulatory clarity for the digital asset ecosystem.