The Club for Growth chimed in today to add its voice in support of the CLARITY Act, crypto market infrastructure legislation that will outline the regulatory ecosystem for digital assets while fueling innovation across the entire financial services sector. The legislation remains parked in the Senate Banking Committee as members seek a compromise between the various industry interests.
Founded in 1999, the Club for Growth is a non-profit that focuses on economic policies that support free enterprise and a market economy. Signed by Club for Growth President David McIntosh, the letter states that the United States is falling behind in digital asset innovation largely due to regulatory uncertainty.
Describing the CLARITY Act as a needed course correction, the group supports the following policies:
- Providing clear jurisdictional boundaries between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), ensuring that digital assets are regulated according to their underlying economic characteristics rather than arbitrary enforcement theories.
- Fostering market-based innovation and competition, which prevents entrenched incumbents from leveraging regulatory ambiguity to stifle new entrants.
- Giving legal certainty for developers, intermediaries, and users, which allows responsible actors to operate within a predictable framework rather than navigating shifting enforcement risks.
- Rejecting regulation-by-enforcement, restoring the proper role of Congress in setting policy and the proper role of agencies in faithfully executing the law.
The letter does not address the key issue of stablecoin yield, the biggest impediment to agreement, as legacy banks fear additional competition from the digital asset sector.
The letter asks for the Senate Banking Committee to prioritize approval of the legislation:
“Further delays in marking up this important legislation risks prolonging uncertainty and ceding more ground to foreign jurisdictions that are moving aggressively to attract digital asset innovation with clearer frameworks. The Senate Banking Committee should seize this moment to provide leadership with urgency, thoughtfulness, and courage.”