US CLARITY Act: A Potential Game-Changer for Global Crypto Regulation
The US government is working on the CLARITY Act, a proposed legislation that aims to create clearer federal rules for cryptocurrencies and digital assets. The bill seeks to divide regulatory responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). If passed, this could change how digital assets are regulated in the US.
The CLARITY Act has already cleared the Senate Banking Committee and is expected to be taken up by the Senate floor in September. According to experts, the bill's impact on the global crypto market will be significant, as it sets a precedent for other countries to follow.
Rajagopal Menon, Vice President of WazirX, said that the CLARITY Act does not change the obligations of Indian investors but provides a reference for how another major market is approaching these questions. He added that the impact will be indirect, affecting global liquidity, sentiment, and asset prices.
Ashish Singhal, Co-founder of CoinSwitch, stated that by setting clearer regulatory responsibilities, the US is creating a blueprint for the sector to operate within established financial rules. Edul Patel, CEO of Mudrex, noted that in India, crypto is currently governed primarily through taxation and anti-money laundering requirements rather than a comprehensive crypto-specific market framework.