In a recent development, Republican members of the US Senate Banking Committee have voiced concerns over a digital asset market structure bill, suggesting it doesn't align with the interests of the cryptocurrency industry. Despite some Democratic opposition to certain provisions, Republicans are promoting the bill as a bipartisan effort.
On Tuesday, the Banking Committee's Republicans, spearheaded by Senator Tim Scott, released a document titled “myth vs. fact” about the CLARITY Act. They argue it's a misconception that the legislation was crafted to benefit the industry, asserting instead that its primary focus is on protecting investors.
“The bill is the result of years of bipartisan collaboration, extensive talks with regulators and law enforcement, and an emphasis on public interest,” stated the Republican Senators. “It aims to enhance national security, safeguard investors, and foster innovation within a framework of clear and enforceable guidelines.”
As the bill approaches a markup session in the Senate Banking Committee, originally anticipated last year, it faces resistance from some crypto companies. This delay has been attributed to ethical concerns, debates over decentralized finance, and the longest US government shutdown in history.
Adding to the discussion, Galaxy Digital has raised alarms about the bill’s potential to expand government surveillance and enforcement capabilities over crypto users. Coinbase and other companies have indicated they might retract their backing unless issues surrounding stablecoin rewards are resolved. A revised version of the CLARITY Act, presented on Monday, proposes a compromise by prohibiting passive gains on stablecoin balances while allowing some form of rewards. Whether this version will advance in the Senate remains uncertain.
Coinbase's chief policy officer, Faryar Shirzad, expressed significant apprehension during a CNBC interview, particularly about provisions that might restrict the SEC from enabling the tokenization of equity markets.
As the Senate Banking Committee prepares for Thursday's markup session, it remains to be seen how the proposed amendments from both Democrats and Republicans will fare and whether they will be incorporated into the final bill.
In parallel, the Senate Agriculture Committee, also under Republican control, plans to unveil its draft legislation on January 21, with a markup session scheduled for January 27. This committee will focus on different elements of the bill, such as the roles of the SEC and the Commodity Futures Trading Commission (CFTC) in regulation and enforcement.