Clarity Act Set for Markup as Senator Cynthia Lummis Campaigns for Bipartisan Support

Source: CoinEdition Original Title: Clarity Act Set Markup as Senator Cynthia Lummis Campaigns for Bipartisan Support Original Link:

Key Highlights

• Bipartisan Clarity Act text is ready for markup on Thursday, January 15.
• Senator Cynthia Lummis has urged Democratic lawmakers to support the Clarity Act.
• SEC Chair considers the Clarity Act an upgrade to the U.S. financial markets.

The Push for Digital Asset Regulation

Pro-crypto U.S. Senator Cynthia Lummis, a Republican, announced that the bipartisan text of the Digital Asset Market Clarity Act is ready for markup this coming Thursday. In her statement, Lummis urged Democratic colleagues to support the legislation, emphasizing that the Act will provide the clarity needed to keep innovation in the U.S. and protect consumers.

Upgrading the U.S. Financial Markets for the 21st Century

Lummis urged other senators, particularly those from the Democratic Party, not to retreat ahead of the landmark event. According to the Republican Senator, the Act will provide the clarity needed to keep innovation in the U.S. and protect consumers.

Most crypto community members, including industry stakeholders, consider the Clarity Act a massive step in addressing cryptocurrency regulation in the U.S. SEC Chair Paul Atkins described the upcoming markup as a potential upgrade of the U.S. financial markets for the 21st century. According to Atkins, this is a significant week for crypto, and he supports Congress providing clarity on the jurisdictional split between the SEC and the CFTC.

What the Clarity Act Implies

According to an overview from the official U.S. Congress website, the Clarity Act would give the CFTC a central role in regulating digital commodities and related intermediaries while preserving certain aspects of the SEC’s authority over primary market crypto transactions, subject to a new limited exemption from SEC registration requirements for fundraising.

Most stakeholders and practitioners in the crypto industry believe the Clarity Act will eliminate the existing ambiguity in crypto regulation, particularly in the U.S. Such unclear roles across the regulatory agencies have led to historical setbacks in crypto innovations, characterized by multiple litigations between the SEC and cryptocurrency projects.

Will the Senate Pass the Clarity Act on January 15?

Despite the rising optimism over the potential passing of the Clarity Act, the chances of achieving it this coming Thursday remain slim. Considering the bill’s current schedule, January 15 is the expected date for the Senate Banking Committee to begin its markup, reducing the chances of passing the bill on the same day.

Additionally, the Senate Agriculture Committee has postponed its markup of the commodities law portion of the bill until the last week of January, making it almost impossible to conclude debates this Thursday. For the bill to pass the Senate, it must go through the committees and then receive a majority vote on the Senate floor in a process that is expected to take time.