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

Coinbase's lobbying arm, along with a coalition of 65 crypto advocacy groups and firms, has called on US House lawmakers to swiftly pass a significant bill during their upcoming meeting. The bill in question, known as the Digital Asset Market Clarity Act or the CLARITY Act, aims to establish a clear regulatory framework for the crypto industry.

The letter, sent on Monday, emphasizes the urgent need for the US to adopt pro-crypto policies to maintain its leadership in the global economy. The groups argue that the lack of standardized rules is hindering institutional adoption and innovation, driving talent and businesses to more crypto-friendly jurisdictions. The CLARITY Act seeks to address this by defining the roles of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) in regulating crypto. The CFTC would oversee most crypto activities, while the SEC would regulate crypto-related securities.

The groups, which include prominent non-fungible token (NFT) companies like OpenSea and Dapper Labs, warn that the US risks losing its crypto leadership if it fails to act. They stress the importance of market structure, which provides clear rules and regulatory clarity for developers, users, and advocates to continue innovating.

House Republican leaders have announced that they will consider the CLARITY Act, along with two other crypto bills, during the week starting July 14, dubbed "Crypto Week." The other bills include the Anti-CBDC Surveillance State Act, which aims to ban central bank digital currencies, and the GENIUS Act, which focuses on regulating stablecoins. The GENIUS Act is expected to be a priority, as it has already passed the Senate and is supported by President Donald Trump, who wants it passed before Congress' August break.

The CLARITY Act has already been advanced by the House Financial Services Committee and the Agriculture Committee and is now before the full House. However, its passage in the Senate remains uncertain. Senate Banking Committee Chair Tim Scott has expressed a desire to pass a crypto market structure bill by the end of September. Senate Democrats, who have previously frustrated Republicans' efforts to quickly pass the GENIUS Act, have signaled similar concerns with the CLARITY Act. Maxine Waters, a top Democrat in the House Financial Services Committee, has criticized the CLARITY Act as a "rushed, overly complicated bill" that could exempt some of the riskiest activities in crypto. She also raised concerns about the Trump family's growing net worth from their crypto ventures.