Warren’s Opposition to the CLARITY Act
With Congress on recess until September 2, Senator Elizabeth Warren has already previewed her approach to the upcoming debate on crypto market structure. During a recent MSNBC interview, Warren expressed her support for regulating the crypto industry but voiced opposition to the Digital Asset Market Structure Clarity (CLARITY) Act.
Introduced by Republicans and passed with bipartisan support in the House, the CLARITY Act is expected to be considered in the Senate in September. Warren, a vocal critic of the crypto sector’s involvement in illicit activities, argues that crypto regulations must not be shaped by the industry itself, emphasizing the need to curb corruption.
What’s at Stake for Crypto Legislation?
Warren’s statement signals a potential clash between her and lawmakers in favor of the CLARITY Act, particularly those from the Republican side. The bill has already gained substantial support in the House, including from Democrats, and aims to address issues like stablecoins and the US central bank digital currency (CBDC).
In addition to the CLARITY Act, Congress is also set to consider the GENIUS Act, which regulates payment stablecoins. This bill has already been signed into law, with the next steps focusing on the CLARITY Act and CBDCs.
Biden Administration’s Involvement
The White House has weighed in on the matter, as a digital asset task force under former President Trump offered recommendations for clearer crypto regulations. The task force stressed the importance of a comprehensive classification system, which could prevent confusion in the marketplace and ensure better protection for investors.
What’s Next?
As the Senate gears up for a busy September, lawmakers are expected to revisit the issues surrounding crypto market regulation. While some anticipate bipartisan support, Warren’s vocal opposition suggests a significant battle ahead. Congress will be under pressure to develop clearer regulations that can provide clarity for the crypto market and avoid economic disruptions
