Crypto Industry Urges US House to Pass CLARITY Act for Regulatory Clarity

Coinbase's lobbying arm, along with 65 other crypto advocacy groups and firms, has urged US House lawmakers to swiftly pass the Digital Asset Market Clarity Act, also known as the CLARITY Act, during their upcoming session. This push is being led by Stand With Crypto, a nonprofit advocacy group, which is advocating for clear regulatory guidelines for the industry. The CLARITY Act aims to provide a comprehensive framework for the regulation of cryptocurrencies, addressing long-standing concerns about the lack of clarity in the regulatory environment.

The CLARITY Act specifies the roles of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) in policing crypto. It gives most of the jurisdiction over crypto to the CFTC, but the SEC would regulate products such as crypto-related securities. The groups signing the letter, including non-fungible token heavyweights OpenSea and Dapper Labs, claimed that there were already signs of US crypto leadership slipping. They argued that a lack of standardized rules hinders institutional adoption and innovation, pushing talent and businesses to more crypto-friendly jurisdictions abroad.

The groups emphasized the urgency of the situation, stating that the US cannot afford to let inaction and uncertainty jeopardize its ability to secure its economic future. They highlighted the need for market structure, which ensures clear rules of the road and provides the regulatory clarity that developers, users, and advocates need to continue innovating.

Republican House leaders have announced that they will consider the CLARITY Act and two other crypto bills during the week starting July 14, dubbed “Crypto Week.” House Speaker Mike Johnson said the chamber would also review the central bank digital currency-banning Anti-CBDC Surveillance State Act and the stablecoin-regulating GENIUS Act. The GENIUS Act is likely to be at the top of the agenda, as it has already passed the Senate, and US President Donald Trump has expressed his desire for the bill to be passed as soon as possible before Congress goes on a month-long break in August.

The CLARITY Act could be the next to hit Trump’s desk, as it is now before the full House after the House Financial Services Committee and the Agriculture Committee advanced it on June 10. It must still pass the Senate, and the Senate Banking Committee Chair Tim Scott has expressed his desire to pass a crypto market structure bill before the end of September.

However, Senate Democrats have frustrated Republicans’ efforts to quickly pass the GENIUS Act to the House, citing concerns over Trump’s growing crypto ties. House Democrats have also signaled similar concerns with the CLARITY Act. Maxine Waters, a top Democrat in the House Financial Services Committee, described the CLARITY Act as a “rushed, overly complicated bill” that would exempt “some of the riskiest activities” in crypto. She also pointed to the Trump family’s growing net worth from their crypto ventures, which now include a crypto trading platform, a stablecoin, a crypto mining business, NFTs, and multiple tokens.