Clarity Act Stalls: Crypto Regulatory Uncertainty Persists in US
The Clarity Act, which aimed to clarify regulatory roles for digital assets in the US, has stalled. The bill sought to define various types of cryptocurrencies and related assets, as well as assign regulatory power over them.
Currently, there is a lack of clarity on which agencies have authority over different assets, leading to conflicts between regulators like the SEC and CFTC. This has resulted in enforcement actions, expensive settlements, and drama, with former SEC Chair Gary Gensler being a key figure in some of these cases.
The Clarity Act aimed to address this issue by elevating the CFTC's role in regulating commodity spot markets, where most cryptocurrency trading occurs. It also sought to provide limited legal protections for software developers in decentralized finance (DeFi).