Senate to Decide Fate of Crypto Scam-Fighting Bill

Crypto scams have become one of the fastest-growing forms of fraud in the United States. According to Senator Elissa Slotkin, crypto-related scams made up roughly half of all cybercrime losses in the country last year.

The Digital Asset Market Clarity Act (CLARITY Act) aims to combat this issue by establishing clear regulations for digital assets and combating fraud. The bill would define regulatory roles for the Commodity Futures Trading Commission and the Securities and Exchange Commission, giving them authority over digital commodities and investment contracts respectively.

The CLARITY Act also forms a public-private task force on fraud, which would be chaired by the Treasury and drawing in the Justice Department, financial-crimes investigators, the Secret Service, state regulators, and industry experts. This task force would help law enforcement track and prosecute digital-asset crimes.