Senator Cynthia Lummis, known for her pro-cryptocurrency stance, has once again emphasized the need to pass the CLARITY Act, a bill designed to structure the cryptocurrency market.
On Thursday, foreign media reported that Senator Lummis took to X to stress the importance of establishing a regulatory framework for digital assets, specifically highlighting the significance of passing the CLARITY Act.
Lummis pointed out that the lack of regulation doesn’t mean there’s no harm; it means there’s no recourse when problems occur.
She added that she’s been working for years to establish the CLARITY Act to ensure the cryptocurrency industry can grow within the U.S. under clear guidelines.
At its core, the CLARITY Act aims to distinctly define the supervisory roles of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) based on different types of digital assets.
The bill categorizes digital assets into groups such as Digital Commodity, Investment Contract Asset, and Payment Stablecoin. Under this classification, the CFTC would oversee digital commodities, while the SEC would supervise investment contract assets.
The bill has already cleared the Senate Banking Committee’s review and voting process. It’s set to undergo further deliberation in the Senate before facing a full chamber vote. Subsequently, it must navigate a reconciliation process between the House and Senate, followed by the President’s signature to become law.