CLARITY Act Faces Fresh Criticism from Within Senate

US Senator Chris Van Hollen has faced criticism from within his own Senate for his stance on the CLARITY Act, which aims to provide clarity and regulation in the crypto space. The bill has been delayed multiple times since its introduction, with some senators arguing that it is not yet ready for prime time.

Van Hollen cited a Wall Street Journal editorial board piece to make his case, quoting the headline 'Clarity for Crypto, Sort of.' He expressed concern that the bill could lead to investment migrating to shadow markets with little or no investor protection.

However, Senator Chris Bentsen from the Senate Banking Committee disagreed, stating that while he shares Van Hollen's concerns, the bill has some positive aspects. Bentsen noted that the bill includes clarifications on bank permissibility, portfolio netting, and rules around DeFi participants, but these clarifications did not carry over when the bill was moved to the Agriculture Committee.

The CLARITY Act has already cleared the House and passed the Senate Banking Committee in May. It has been sitting on the Senate Legislative Calendar since June 1st, with a vote now pushed back to September at the earliest.