The CLARITY Act, aimed at establishing a regulatory framework for most cryptocurrencies in the U.S., recently passed the House Agriculture Committee with a 47-6 bipartisan vote. However, it now faces significant challenges in the House Financial Services Committee, which is grappling with the bill's implications. The Act proposes to exempt most crypto assets from SEC oversight, allowing them to be regulated by the CFTC instead. While some lawmakers see potential benefits, including more favorable conditions for token issuers, Democrats in the Financial Services Committee have raised concerns about deregulation risks and potential enabling of corruption. During the markup session, amendments were introduced to curb involvement of political figures in crypto ventures, though these were ultimately rejected. Given past opposition during discussions of stablecoin legislation, the Financial Services Committee may present a tougher battleground for the CLARITY Act, reflecting broader disagreements over the roles of the CFTC and SEC in crypto regulation.

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