The House Financial Services Committee held a meeting today to review the Clarity Act, comprehensive digital asset legislation that aims to clarify a regulatory approach while providing improved consumer protection.
Committee Chairman French Hill issued a statement on the bill:
“Last week, this Committee held a thoughtful and constructive hearing on our digital asset market structure legislation, the CLARITY Act. As we all know, for years, the digital asset ecosystem has been plagued by regulatory uncertainty. The absence of clear rules of the road has not only stifled innovation but discouraged entrepreneurs and confused investors. Digital assets and blockchain technology have the potential to fundamentally reshape how we interact with the internet. These innovations can unlock opportunity, empower individuals, and expand access to the financial system, but we need a regulatory framework in place to experience these benefits. The CLARITY Act addresses this head-on.”
One of the key clarifications is the role of the Securities and Exchange Commission or the Commodity Futures Trading Commission in regulatory oversight. The bill seeks to define responsibilities.
While the majority Republicans are moving forward with the bill, ranking member on the Committee, Maxine Waters, lambasted the legislation, dubbing it the Calamity Act.
Fresh off a trip to the riots in California, where Waters blamed the chaos on President Trump, Waters declared:
“This Committee should be focused on this unfolding coup, thievery, and bribery, and the economic crisis hitting American families. Instead, Republicans are jamming through the ‘CALAMITY Act,’ which not only legitimizes Trump’s corruption, but also creates enormous loopholes that expose investors to fraud and weakens our national security. This bill is bad for startups, giving even more power to megabanks and crypto giants. And, despite the industry’s request for clarity, this bill creates vague new definitions that will result in endless litigation. And while the bill’s sponsors say this is the most significant rewrite of securities laws since 1933, the Committee hasn’t bothered to invite the Chairman of the SEC to testify. In fact, this same SEC Chair has refused to provide Democrats with his thoughts on the bill. I suppose he’s decided that if he can’t say something nice, he won’t say anything at all. Or Trump won’t allow him to say anything.”
Waters started her statement by proclaiming President Trump had violated the sovereignty of the state of California by sending in the National Guard to quell the riots and looting. Representative Waters said, “This isn’t Trump Derangement Syndrome. This is Trump Destruction Syndrome because everything this President touches, he destroys.”
Meanwhile, it was pointed out on X that changes and adjustments are being made to the language of the bill. Peter Van Valkenburg, Executive Director of Coin Center, thanked Chairman Hill, Representative Bryan Steil, Representative Richie Torris, a Democrat supporter, and others for adjusting a question on custody.
“New text of CLARITY Act in the House includes clarity for non-custodial devs on the question of unlicensed money transmission. Codifies the 2019 FinCEN guidance!” said Van Valkenburg.
Other changes may be made once the legislation emerges in the Senate.
The legislation is likely to become law at some point this year. Digital assets are here to stay – it is inevitable, and bright-line rules are needed not just for insiders but importantly for consumers and investors. Representative Waters’ proclamations of calamity will eventually come to naught.
The CLARITY Act is available here.