Crypto Industry Urges Congress to Pass CLARITY Act for Regulatory Clarity

Coinbase's crypto lobbying group, along with 65 other crypto advocacy organizations and companies, has urged the U.S. House of Representatives to pass the "Digital Asset Market Structure and Clarity Act" (CLARITY Act) during its upcoming session. The joint letter, issued this Monday, emphasizes the need for swift action to adopt blockchain-friendly policies in the U.S., warning that without such measures, the country risks falling behind others in the global economy.

The CLARITY Act aims to clarify the regulatory framework for the crypto industry by defining the division of responsibilities between the U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). Under the act, the CFTC would hold the majority of regulatory authority over the crypto market, while the SEC would oversee crypto products related to securities. This clarification is seen as crucial for market participants who have long called for a more defined regulatory landscape to guide their operations and investments.

The push for the CLARITY Act comes at a time when Congress has shown growing interest in crypto regulation. Earlier this year, a bipartisan resolution recognizing Crypto Week was passed, aimed at raising awareness about blockchain, digital assets, and U.S. leadership in crypto regulation. This resolution underscores the importance of clear and comprehensive regulations to foster innovation and protect investors in the crypto space.

The CLARITY Act is one of three significant bills currently moving through Congress, alongside the Genius Act and the Bitcoin Act. These bills are part of a broader effort to establish clear regulatory frameworks for the crypto industry, which has seen increased scrutiny and debate in recent years. The lobbying effort by Coinbase and other crypto groups highlights the industry's growing influence in Washington, as stakeholders increasingly engage with lawmakers to shape the regulatory environment.

The passage of the CLARITY Act would mark a significant step forward in establishing a clear and consistent framework for the crypto industry. This would benefit both investors and innovators alike, providing the necessary clarity and oversight to encourage innovation while protecting investors. The outcome of this legislative push will be closely watched by industry participants and regulators, as it could set the tone for future crypto regulations in the U.S.