Solana Policy Institute Says CLARITY Act Could Set Global Regulatory Standard
Summary
- The Solana Policy Institute said the CLARITY Act could become a global regulatory standard if it passes.
- The bill includes rules on stablecoins, decentralized finance (DeFi) and anti-money laundering (AML), while shifting crypto oversight authority from the SEC to the CFTC.
- The crypto industry is optimistic about the bill's prospects, though some investment banks see low odds of passage this year.
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The CLARITY Act, a key US bill on crypto regulation, could become a global regulatory standard if enacted, the Solana Policy Institute said. Markets are watching how changes in the US regulatory framework could influence policy worldwide.
Decrypt reported on May 28 that Solana Policy Institute Chief Executive Officer Kristin Smith said the CLARITY Act could have a broad impact across global finance if it passes.
Smith said countries including South Korea, the UK and Canada began adopting similar regulatory frameworks after the GENIUS Act, a US stablecoin bill, passed last year. She added that the CLARITY Act could also serve as a global standard.
The bill includes provisions on stablecoins, decentralized finance, or DeFi, and anti-money laundering, or AML, rules. Its core provision would amend existing securities laws to give the Commodity Futures Trading Commission, rather than the Securities and Exchange Commission, authority over oversight of most crypto assets.
Some Democratic lawmakers, including Senator Elizabeth Warren, oppose the bill. They argue it would weaken global regulation and allow crypto to be used for terrorist financing and sanctions evasion.
The crypto industry is optimistic about the bill's prospects, but some investment banks see low odds of passage this year. The CLARITY Act is set for a full Senate vote in June, after which it would go through House coordination and require the president's signature.
