Coinbase Crypto Lobby Urges Congress to Back Major Crypto Bill
US House lawmakers have been urged by 65 crypto organizations to pass the CLARITY Act, a major bill that would establish a regulatory framework for the cryptocurrency industry. The letter, signed by prominent crypto firms and advocacy groups, including Coinbase's lobbying arm, calls on Congress to quickly pass the Digital Asset Market Clarity Act – better known as the CLARITY Act.
The CLARITY Act specifies the roles of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) in policing crypto. It gives most of the jurisdiction over crypto to the CFTC, while the SEC would regulate products such as crypto-related securities. The bill aims to provide market structure for the industry, ensuring clear rules of the road and regulatory clarity that developers, users, and advocates need to continue innovating.
"We know that there have been efforts to politicize crypto legislation, but with crypto drastically reshaping the global economy, the U.S. risks falling behind unless we adopt pro-crypto policies that fully embrace blockchain technology," said the letter from Stand With Crypto and 65 crypto advocacy groups and firms.
The group's concerns are echoed by US crypto leadership "slipping" away to more crypto-friendly jurisdictions abroad. A lack of standardized rules is hindering institutional adoption and innovation, pushing talent and businesses to countries with more favorable regulatory environments. The letter warned that inaction and uncertainty could jeopardize the ability to secure America's economic future.
Republican House Leaders to Consider CLARITY Act during "Crypto Week"
House Republican leaders have announced that they will consider the CLARITY Act, along with two other crypto bills, in what they dubbed "Crypto Week". The week-long review of the legislation is expected to take place starting July 14. House Speaker Mike Johnson confirmed that the chamber would also examine the Anti-CBDC Surveillance State Act and the GENIUS Act.
The GENIUS Act is likely to be at the top of the agenda, as it has already passed the Senate. US President Donald Trump expressed his desire for the bill to be passed as soon as possible before Congress goes on a month-long break in August. The CLARITY Act could be next to hit Trump's desk, after passing through the House Financial Services Committee and Agriculture Committee earlier this month.
Senate Democrats Raise Concerns over CLARITY Act
Senate Democrats have expressed concerns over the CLARITY Act, citing fears that it would exempt "some of the riskiest activities" in crypto. Maxine Waters, a top Democrat in the House Financial Services Committee, described the bill as "rushed, overly complicated legislation" that would legitimize Trump's growing crypto ties.
Trump has reportedly added at least $620 million to his net worth due to his and his family's crypto ventures. The letter from Stand With Crypto and 65 crypto advocacy groups emphasizes the need for clear rules and regulatory clarity to ensure institutional adoption and innovation in the industry.
The Future of Crypto Regulation
The CLARITY Act represents a significant step forward in regulating the cryptocurrency industry. Its passage would provide much-needed market structure, ensuring that the U.S. remains competitive in the global economy. However, concerns over the bill's complexity and potential exemptions remain.
As Congress reviews the legislation, it is essential to consider the long-term implications of crypto regulation on the economy, innovation, and national security. The fate of the CLARITY Act will be a crucial test of whether the U.S. can adapt to the rapidly evolving world of cryptocurrency.