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#Virus
The âClear Actâ that was rejectedâwhat exactly are they trying to do?
This billâs full name is the âClarity for Digital Assets Act.â Translated literally, itâs the âDigital Assets Clarity Act.â Just from the name, you can tell what it aims to solve: the biggest headache in the crypto worldâunclear regulation.
How chaotic has the U.S. crypto market been over the past few years? The same token: the SEC says itâs a security, while the CFTC says itâs a commodity. The two agencies compete for territory, and no one gives a definitive answer. Without written legislation to set the boundaries, the entire industry lives under the shadow of âbeing fined at any time.â
And this bill would have been the first to categorize crypto assets: sufficiently decentralized assets like Bitcoin and Ethereum would be classified as digital commodities, under the CFTC; project tokens raised through financing would fall under the SEC; and stablecoins would have their own set of rules. It would also pave the way for exchanges like Coinbase to obtain a federal compliance license, so they wouldnât have to fight the SEC in court every day.
More importantly, once the bill takes effect, massive pools of institutional capitalâlike pension funds and mutual fundsâwould have a compliant channel to enter the market and buy crypto. In plain terms, this is the âticket for the official forcesâ that the crypto industry has been waiting for for years.
Trumpâs âcrypto businessâ became the billâs death knell
So the question is: if itâs such a good bill, why was it killed? The opposition in Congress was very straightforward: Trump himself holds a large number of business interests related to cryptocurrencies, with income exceeding hundreds of millions of dollars.
And this bill didnât include enough binding provisions to address conflicts of interest that would benefit Trump. Put simply: youâre a U.S. president, you have your own businesses in the crypto space, and you push a regulatory bill that favors youâhow can anyone guarantee youâre not acting out of self-interest?
#Virus
The âClear Actâ that was rejectedâwhat exactly are they trying to do?
This billâs full name is the âClarity for Digital Assets Act.â Translated literally, itâs the âDigital Assets Clarity Act.â Just from the name, you can tell what it aims to solve: the biggest headache in the crypto worldâunclear regulation.
How chaotic has the U.S. crypto market been over the past few years? The same token: the SEC says itâs a security, while the CFTC says itâs a commodity. The two agencies compete for territory, and no one gives a definitive answer. Without written legislation to set the boundaries, the entire industry lives under the shadow of âbeing fined at any time.â
And this bill would have been the first to categorize crypto assets: sufficiently decentralized assets like Bitcoin and Ethereum would be classified as digital commodities, under the CFTC; project tokens raised through financing would fall under the SEC; and stablecoins would have their own set of rules. It would also pave the way for exchanges like Coinbase to obtain a federal compliance license, so they wouldnât have to fight the SEC in court every day.
More importantly, once the bill takes effect, massive pools of institutional capitalâlike pension funds and mutual fundsâwould have a compliant channel to enter the market and buy crypto. In plain terms, this is the âticket for the official forcesâ that the crypto industry has been waiting for for years.
Trumpâs âcrypto businessâ became the billâs death knell
So the question is: if itâs such a good bill, why was it killed? The opposition in Congress was very straightforward: Trump himself holds a large number of business interests related to cryptocurrencies, with income exceeding hundreds of millions of dollars.
And this bill didnât include enough binding provisions to address conflicts of interest that would benefit Trump. Put simply: youâre a U.S. president, you have your own businesses in the crypto space, and you push a regulatory bill that favors youâhow can anyone guarantee youâre not acting out of self-interest?
