Crypto Groups Urge Congress to Pass CLARITY Act for Regulatory Shift

Three prominent crypto trade groups have called on lawmakers to pass the bipartisan CLARITY Act, which aims to shift the regulatory jurisdiction of cryptocurrencies from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC).

The Blockchain Association, The Digital Chamber, and the Crypto Council for Innovation sent a letter to Speaker of the House Mike Johnson and House Minority Leader Hakeem Jeffries on July 11, urging Congress to advance the legislation. The CEOs of these organizations emphasized that the CLARITY Act represents a significant step towards regulatory clarity, which is essential for fostering innovation and the growth of blockchain technology in the United States.

According to the letter, the passage of the CLARITY Act would send a strong message that the U.S. is committed to being a global leader in digital assets. The move would also mark a shift away from the SEC's approach of regulation by enforcement, which has been a contentious issue for crypto proponents. The letter encourages the Senate to build on the momentum from the House and work closely with industry stakeholders to bring bipartisan market structure legislation to the Senate floor as soon as possible.

The call for the CLARITY Act's passage comes ahead of the Republican Party's planned "Crypto Week" on Capitol Hill. However, Democratic lawmakers Maxine Waters and Stephen Lynch have announced their own "Anti-Crypto Corruption Week" in opposition to the Republicans' crypto legislative efforts. Congressman Lynch criticized his Republican colleagues for allegedly doing the bidding of the crypto industry while ignoring the vulnerabilities and opportunities for abuse that exist in crypto.

Despite the political divide, the push for the CLARITY Act highlights the growing need for regulatory clarity in the crypto industry. The shift in regulatory jurisdiction from the SEC to the CFTC could provide a more stable and predictable regulatory environment, which is crucial for the continued growth and innovation in the digital asset space. The industry stakeholders are hopeful that the bipartisan support for the CLARITY Act will lead to its passage and implementation, ensuring the U.S. remains a leader in digital assets.