The CLARITY Act, aimed at reshaping crypto regulation in the U.S., has advanced through two key House committees, the Financial Services Committee and the Agriculture Committee, with votes of 32-19 and 47-6 respectively. If passed, the Act will establish a new regulatory framework favoring the Commodity Futures Trading Commission (CFTC) over the Securities and Exchange Commission (SEC) for most digital assets. House Financial Services Chair French Hill emphasized that this legislation presents a historic opportunity to provide a clear regulatory framework for innovation in American finance. The dual approvals mark a significant milestone, with the next step being a consolidation of the two committee versions into one for floor consideration. While supporters tout it as a step towards clearer rules, critics express concerns about potential reductions in regulatory safeguards. The bill seeks to define roles between the SEC and CFTC, protect consumer rights, and promote self-custody. However, debates continue regarding its implications on financial protections.

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