- Two committees in the room voted Tuesday to advance the Clarity Act.
- Democrats fear that there is an escape in a so-called maturity test.
- Certified organizations sufficiently mature or decentralized will benefit from fewer regulatory charges, according to the bill.
Legislators advanced the cryptography legislation on Tuesday. The bill, called the Clarity Act, would largely have the surveillance of the cryptography industry at the Commodity Futures Trading Commission.
But the Democrats have warned that regulators could find themselves overwhelmed by a flood of cryptographic companies looking for more favorable regulatory treatment by making false promises to decentralize their property and their operations – which many in the cryptographic industry call the “theater of decentralization”.
The Clarity Act adopted the agricultural committee of the House of Representatives on Tuesday during a vote of 47-6, many Democrats voting in favor.
He then adopted the Chamber’s Financial Services Committee in a tighter vote from 32 to 19 years old, which followed a marathon audience in which some Democrats have targeted provisions in the bill which would facilitate regulations for decentralized blockchains and eliminate them entirely for certain DEFI activities.
The law on clarity aims to end a regulatory war between the CFTC and the Securities and Exchange Commission.
The bill offers lighter regulations for “mature blockchain systems”, blockchains and protocols that meet or plan to meet, its definition of decentralization. The bill also exempts from many DEFI activities – such as the exploitation of certain cryptographic infrastructures or the development and publication of the challenge code – from these regulations.
This feared that certain Democrats of the Congress, who fear that the dry – which is responsible for examining the allegations of decentralization – will be overwhelmed by the demands of cryptographic societies in search of more lenient surveillance.
“Huge potential escape”
Under the bill, the SEC would have up to 120 days to meet the requests of organizations. If he does not react within this period, an organization can be self-certified as mature.
The advantages of certification include fewer declaration requirements, more indulgent rules concerning the sale of initiates and an easier path to registration on crypto exchanges.
“There is an active crypto bazillion shot every day in this country and in the world,” said representative Bill Foster, Democrat of Illinois.
“It seems to be an end to the end of all those who said:” Oh, I know that it is not like that now, but it is my intention to be decentralized. “It seems that it is an enormous potential escape in this thing, and especially when the dry is without cause.”
Reprch Hill, a republican of Arkansas and the president of the Financial Services Committee, said that he wanted the SEC to receive the funding necessary to review the requests, adding that the SEC staff helped the legislators to write the bill.
Representative Bryan Steil, a Wisconsin republican, added that candidates can be responsible for making false or misleading statements on their requests, such as claiming non -existent decentralization plans.
Democrat amendments
Within the Chamber’s Agriculture Committee, the Republicans accepted certain amendments proposed by the Democrats to the bill, including the one that would allow the CFTC to invoice nominal registration fees to cryptographic exchanges and other intermediaries – money that would be used to help the CFTC manage the deluge of expected work.
The changes in the Democrats were however shot in the financial services committee.
These modifications included the ban on bailing out insolvent cryptography companies, preventing the president and his family from launching their own cryptography companies, preventing the federal government from buying crypto and ensuring that dry and CFTC continue to be conducted on a bipartite basis.
The two agencies will be responsible for marking additional rules if the bill adopts. But President Donald Trump threatened to upset the tradition of letting the minority party at the Congress appoint two people to sit on each commission.
“There is a risk that there is no democratic voices on the dry to issue these rules,” said representative Sean Casten, Democrat of Illinois.
“Unless you are of an opinion that Donald Trump will be the last president of the history of our Republic, it is in all our interests for us to ensure that these committees are fully endowed,” he continued.
“Some regions take time, and in four years, when President Lina Khan or President Gary Gensler or who are afraid of others, it would also protect in this scenario.”
Aleks Gilbert East DL News“DEFI correspondent based in New York. You can reach it to MailTO: aleks@dlnews.com.
