A broad alliance of crypto companies, under the leadership of Coinbase, urges the US Congress to adopt a pioneering law to regulate digital assets. The so -called Clarity Act is intended to create clear responsibilities and free the industry from the legal gray area. But political resistance remains considerable.
The US crypto industry, led by the lobby organization of the Coinbase trading platform, increases the pressure on US politics. In a joint appeal, 65 companies and interest groups require the rapid adoption of a law to redefine the rules of the game for the entire sector. It is about no less than the future of regulation for Bitcoin, Ethereum and Co. in the largest economy in the world.
More power for the CFTC
In a letter published on Monday, “Stand with Crypto” and 65 other organizations asked the MPs of the House of Representatives to support the so -called “Digital Asset Market Clarity Act” – better known as Clarity Act.
Photo: Börsenmedien AG
“We know that there have been attempts to politicize crypto legislation, but since crypto drastically redesigned the global economy, the United States is risking to fall behind if we do not pursue a pro-crypto policy that completely accepts blockchain technology,” says the letter.
The Clarity Act stipulates that the supervision of the majority of the crypto market would pass to the raw material supervisory authority CFTC (Commodity Futures Trading Commission). The mighty stock market supervision SEC (Securities and Exchange Commission), on the other hand, would only be responsible for products that are clearly classified as securities.
USA threatens to lose connection
The signatories of the letter, which also include heavyweights from the NFT world such as OpenSea and Dapper Labs, urge it: There are already “signs that the United States's leadership role slips in the crypto sector”.
The lack of standardized rules hinder institutional acceptance and innovation and drive talents and companies into more crypto-friendly countries. “We cannot afford to allow ourselves to endanger our ability to secure the economic future of America,” said the clear message. Above all, the industry needs a clear market structure.
„Crypto Week“ im Kongress
The chairs of the Republicans in the House of Representatives announced on Thursday that they will check the Clarity Act and two other crypto laws in the week from July 14th as part of the so-called “crypto week”.
In addition to the Clarity Act, there is also a law on the ban on a digital central bank currency (CBDC) and the “Genius Act” to regulate stable coins on the agenda. The latter has already passed the Senate and is vehemently demanded by President Donald Trump.
Resistance of the Democrats
But the political headwind is strong. The Democrats in the Senate had already blocked the quick adoption of the Genius Act and are now considering similar concerns about the Clarity Act.
Maxine Waters, a leading democrat in the Finance Committee of the House of Representatives, described the Clarity Act as a “rushed, excessive complicated draft law”, which “would exempt some of the most risky activities” in the crypto sector from the supervision.
The crypto industry is mobilizing and the pressure on US politics is enormous. An adoption of the Clarity Act would be a game change for the entire industry and especially for stocks such as Coinbase. Regulatory clarity is the sacred grail that institutional investors are waiting for and would be equivalent to a liberation. Investors remain on board with Bitcoin.
Buy Bitcoin and Ethereum – without any wallet!
If you don't want to create a wallet, but still want to invest in Bitcoin or Ethereum, the “Bitcoin Direct ETP” or the “Ethereum Direct ETP” from NXTSESS is the perfect solution. This means that investments in the Bitcoin are as easy as buying a share. More on this here.
Reference to conflicts of interest
The board and majority owner of the publisher Börsenmedien AG, Mr. Bernd Förtsch, is directly and indirectly received positions on the subsequent financial instruments mentioned in the publication or this related derivatives that can benefit from the price development resulting from the publication: Bitcoin – United States dollar.
NXTSESS GmbH, in which Börsenmedien AG immediately holds a participation, is the issuer of the financial product: NXTSESS Bitcoin Direct ETP, Nxtastets Ethereum Direct ETP.
