US Senate to Vote on CLARITY Act This Week Amid Bipartisan Hurdles

The US Senate is expected to vote on the CLARITY Act this week, which aims to create a regulatory framework for the cryptocurrency market. The bill requires at least 60 votes to proceed, and Republicans are negotiating with Democrats to increase bipartisan support.

Seven Democratic senators have expressed concerns about the final version of the bill, citing inadequate provisions related to ethics guidelines, combating illicit financing, and preventing conflicts of interest.

SEC member Hester Peirce has also warned that moving traditional financial products to the blockchain does not automatically exempt them from securities regulations. She noted that some crypto 'vault' products could be considered mutual funds and subject to securities laws.

The CLARITY Act aims to clarify which assets and activities in the cryptocurrency market fall under the supervision of the SEC or the Commodity Futures Trading Commission (CFTC).