Cryptocurrency industry leaders, U.S. lawmakers and experts are debating the CLARITY Act, a digital asset market-structure bill scheduled for markup Thursday by the Senate Banking Committee, over how federal rules would govern trading, enforcement and investor protection. (Ed. note: Ethics guardrail concerns and a prolonged government shutdown delayed earlier consideration.)
Republicans on the committee, led by Senator Tim Scott, released a “myth vs. fact” sheet denying the bill serves industry interests and saying it focuses on investor protection. “The bill has been shaped by years of bipartisan work, extensive engagement with regulators and law enforcement, and a focus on public-interest outcomes,” the statement said.
Market participants voiced objections on surveillance and stablecoin policy. Galaxy Digital warned the bill could expand government surveillance and enforcement of crypto users, while some firms said they might withdraw support over stablecoin reward rules.
An amended draft would bar passive returns on stablecoin balances but would not ban rewards outright. Coinbase chief policy officer Faryar Shirzad said in a Wednesday CNBC interview the draft contains provisions causing the firm “enormous concern.”
Republican members of the Senate Agriculture Committee plan a draft release on Jan. 21 and a markup on Jan. 27, with both panels expected to weigh agency roles for the SEC and the CFTC.
