On May 29, House Financial Services Committee Chairman French Hill (R-AR) introduced the Digital Asset Market Clarity (CLARITY) Act, a pivotal piece of legislation aimed at establishing a regulatory framework for crypto assets in the United States.
Hill further expressed optimism about the bill’s potential to secure America’s position as a global leader in digital assets and looks forward to presenting it to President Donald Trump, who has garnered massive support from crypto investors with his latest decisions in terms of regulation and innovation.
The CLARITY Act aims to protect consumers by mandating that digital asset developers and customer-facing firms provide essential disclosures to their clients. It also requires these companies to keep customer funds separate from their own, addressing potential conflicts of interest that could arise.
Additionally, the legislation aims to facilitate the growth of digital asset projects by providing developers with a clear pathway to secure funding under the oversight of the Securities and Exchange Commission (SEC).
The introduction of the CLARITY Act follows a bipartisan hearing on digital assets that took place about three weeks earlier. That hearing aimed to discuss a Digital Asset Market Structure Discussion Draft but became contentious when several Democratic lawmakers walked out in protest over issues related to the Trump administration’s involvement in cryptocurrency.
Rep. Maxine Waters (D-CA), the ranking member of the House Financial Services Committee, criticized the bill’s introduction, noting that it occurred after Hill declined to include provisions that would restrict Trump from benefiting financially from cryptocurrency ventures.
Featured image from DALL-E, chart from TradingView.com
