Three key acts of crypto legislation have been approved in the House of Representatives today. As was recently reported, the GENIUS Act, payment stablecoin legislation, was approved in the House and is now on its way to the President’s desk to be signed into law.
The CLARITY Act (HR 3633), the market infrastructure bill that provides guidelines for regulating the various types of digital assets, was approved by a vote of 294 Yeas and 134 Nays. 78 Democrats joined in supporting the legislation. No Republicans voted against the bill.
The Anti-CBDC Surveillance State Act (HR 1919) came down to party lines. 219 Republican members voted for the bill, and 210 Democrats voted against the bill. Only two Democrats backed the bill, which bans the Federal Reserve from issuing a retail CBDC or central bank digital currency.
A crucial item for many Republicans, the fear of government abuse and overwhelming privacy concerns regarding a federally issued digital currency that can be easily monitored and manipulated, drove the legislation. As most Democrats voted against the bill, these concerns are real.
Both of these bills will now be transferred to the US Senate for deliberation and possible approval.
The CLARITY Act may take some time to garner sufficient support for approval, as outlining new regulations for the emerging digital asset sector, including digital securities, is a significant undertaking.
At the same time, updated rules are urgently needed, as market forces are compelling policymakers to keep pace with the global tokenization and cryptocurrency markets.
Crypto Council for Innovation CEO Ji Hun Kim stated that the legislation provides the necessary structure to a fragmented regulatory landscape.
“It clarifies the roles of the SEC and CFTC, strengthens investor protections, recognizes the importance of decentralization, and gives developers a clear path to build.”
He added that as the digital economy accelerates, clarity is needed to ensure the US continues to be the standard setter.