Clarity Act Hits Snags in Senate as Crypto Sector Awaits Regulation

A bill that would establish regulations for the cryptocurrency industry in the US has reached a critical juncture in the Senate. The Digital Asset Market Clarity Act, which has been at the top of the crypto sector's wish list for years, aims to provide clarity on how the sector will be regulated.

The bill, which is over 600 pages long, would formally split oversight of the crypto sector between the SEC and the CFTC. However, it has faced fierce opposition from those who see it as an attempt by the industry to encode lenient rules into law without enough safeguards.

Ryan VanGrack, vice chair of Coinbase, said 'tens of millions of Americans are investing in products that don't have clear regulatory oversight. That's an abomination.'

The crypto sector has grown beyond Bitcoin and includes various cryptocurrencies such as meme coins. The technology underpinning these coins is also being adopted by the broader financial sector.