House Democrats convened a hearing to express their concerns about the CLARITY Act, a proposed crypto market structure bill that aims to establish a framework for regulating digital assets. Witnesses at the hearing emphasized that the bill contains loopholes that could allow traditional financial firms to evade regulations. Amanda Fischer, Policy Director at Better Markets, stated that by exempting most crypto assets from existing U.S. securities laws, the Act could incentivize financial institutions to adopt blockchain technology to bypass regulatory costs. Concerns were also raised about the two-tiered system for categorizing crypto assets, with most being classified as digital commodities, thus escaping SEC oversight. Democrats criticized the legislative approach, arguing that it prioritizes financial innovation over regulatory integrity.

Source 🔗