The Clarity Act includes loopholes, that, according to expert's testimony before the House Financial Services Committee on June 6, 2025, would allow traditional financial institutions to move corporate actions, like capital raising, onto blockchain networks in order to avoid U.S. Securities regulation

Event date

June 6, 2025

Quotes that support claims

Fischer said that by carving crypto out of U.S. securities laws that have existed since the 1930s, the CLARITY Act would incentivize traditional financial institutions to “shoehorn” routine functions like capital raising onto blockchain networks as a means of dodging regulation and lowering costs.

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.

Most of the Democrats attending this bonus hearing on the Clarity Act were in the crypto-critical camp, though Representative Jim Himes, a Connecticut Democrat, has supported crypto bills in the past and questioned witnesses at the hearing about his concerns that the bill may include loopholes that could allow financial firms to dodge oversight.

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Week 23 of 2025