CLARITY Act Passes Committee Markup Phase, Heads To House Floor
Highlights
- The CLARITY Act passed the markup phase before the House Committee on Agriculture and House Financial Services.
- The House Committee on Agriculture voted 47 to 6 in favor of the bill while the Financial Services Committee voted 32 to 19.
- Some crypto industry players have raised concerns over a a new section in the CLARITY Act.
- The section gives the SEC the power to determine on an individual basis what tokens classify as securities.
In a massive development, the CLARITY Act has passed the first hurdle, as this bill looks to become law. The Act will now head to the House floor and could become one of the first major regulatory frameworks for the crypto industry.
Meanwhile, crypto stakeholders have voiced out against a provision in the CLARITY Act. These industry players noted that the provision has ties to the Gensler-led administration and brings about uncertainty, which is against the aim of the bill.
CLARITY Act Passes Committee Stage
In an X post, Journalist Eleanor Terrett revealed that the CLARITY Act has passed out of the US Financial Services Committee on a 32 to 19 vote. However, the committee was not as bipartisan as the House Committee on Agriculture. The bill will now head to the House for a full vote by all representatives.
Eleanor Terrett had earlier revealed that the CLARITY Act had passed out of the House Committee on Agriculture with a vote of 47 to 6, following a nearly three-hour markup. The markup in the House Financial Services Committee began after that session.
CoinGape had earlier reported that the US House Financial Services Committee had scheduled June 10 for the review process. Members of the Committee and the House Committee on Agriculture will convene at the Rayburn House Office Building to review the provisions of the CLARITY Act.
Crypto Stakeholders Criticize Provision
In an X post, Journalist Eleanor Terrett revealed that some industry players she has spoken to are raising concerns over a new section in the amended version of the bill. These industry players have gone as far as describing this section as a “Gensler-era” provision.
As regards their concerns, these crypto stakeholders noted that the new section would eliminate exceptions for previously issued tokens. Instead, it would not give the SEC authority to determine individually which tokens classify as a security. These critics argue that this approach reintroduces the uncertainty that the bill is meant to resolve.
Moreover, the section in the CLARITY Act could raise a similar issue with the Himman report, in which the former SEC Director declared that ETH wasn’t a security. At the same time, the Commission sued Ripple, claiming that XRP was a security.
Meanwhile, eight crypto firms, including Uniswap, have shown support for the addition of the Blockchain Regulatory Certainty Act (BRCA) in the CLARITY Act. The BRCA protects creators of non-custodial blockchain technology.
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