House Democrats Sound Alarm on CLARITY Act: Impact 'Will Not Be Quarantined to Crypto', Says Expert

Description

House Democrats held a “minority day” hearing to warn that the proposed CLARITY Act could create regulatory loopholes not only for crypto but also for traditional finance on June 6, 2025, . Experts testified that the bill’s exemption of most crypto assets from SEC oversight could incentivize financial firms to bypass long-standing investor protections by shifting operations to blockchain. Democrats also criticized the bill for failing to prevent former President Trump from profiting off crypto ventures while in office.

Authors

Sander Lutz

Publish date

June 6, 2025

Publisher

Decrypt

Web URL

https://decrypt.co/324043/house-democrats-sound-alarm-clarity-act

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Democrats hold CLARITY act hearing

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Fischer argued that few if any token issuers will ever engage with that more rigorous process, given that the CLARITY Act, in her opinion, already offers so many loopholes a token issuer could take advantage of instead of conceding that their offering represents an investment contract.

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Though numerous substantive issues related to the bill were discussed during Friday’s hearing, Democratic leaders like Financial Services Committee Ranking Member Maxine Waters (D-CA) focused their critiques mainly on the refusal of Republicans to include language in the legislation that would bar President Donald Trump from engaging in his numerous, lucrative crypto ventures while in office.

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