Until now, the initiates of the cryptographic industry expect the long-awaited bill of the House of Representatives to establish rules for the cryptocurrency markets will bring us at least 30 Democratic voters when it will reach the time for a vote on Wednesday afternoon, alongside the majority of Republicans of 220 members of the Chamber.
Even if a large part of the sector is preparing to celebrate one of its most consecutive legislative victories, some in the industry still want to repair what they consider as serious faults in the law on the clarity of digital asset markets when it is moving to the Senate. This can be an option, because cryptographic lobbyists have been informed by the contacts of the Senate that the Chamber plans to write its own bill, which will have a strong overlapping of clarity but can adopt different approaches in key fields.
“After years of illegitity and regulatory regulation by application, the Clarity Act passing the room will be a major and welcome step, even if it is not perfect,” said Chen Arad, co-founder and chief experience at Solidus Labs, in a press release in Coindesk. When the bill arrives in the Senate, he said that he would expect more work on “jurisdictional clarity” between regulators – the commodity future trading commission (CFTC) and commission of securities and exchange (SECOND).
Behind the scenes, in places such as group phone calls among the leaders of cryptography and their legislative allies, the leaders urged the diversity of the crowd of crypto to show a United Front on the legislation to finally establish American regulations for the industry, according to people familiar with the discussions. But decentralized finance (Challenge) Weapon of digital active space – for one – had important reserves on the label of the Clarity Act.
If the legislation is adopted with a bipartite increase this week, it then heads for the Senate for examination. The Republicans of the Chamber began to call this “crypto week”, and they have already moved procedural votes on Tuesday to set up the most consecutive bill votes, with the law on clarity expected on Wednesday and the law on engineering on Thursday.
President Donald Trump urged the Republicans to put themselves behind the legislative push of cryptography on Tuesday, boasting in an article on Social Truth according to which it puts the United States forward foreign competitors in China and Europe.
“We direct the world and work hard with the Senate and the House to obtain even more legislation on this subject!” Trump concluded.
Is the Senate?
The long act of clarity would establish an entirely new regulatory regime for the surveillance of cryptographic markets, defining clear definitions for different types of digital assets and attributing surveillance agencies to specific roles – in particular the most popular CFTC of most exchanges in the cryptographic sector, because its most popular popular asset, (BTC) is a commodity.
While the president of the Senate banking committee, Tim Scott, said that the law on clarity would be a “solid model” for the work of the Senate, the Senate has demonstrated with the other Crypto-Major bill, the guidance of stable regulation and the establishment of national innovation for American stablecoins (GENIUS) Act, so that he can promote his own version. House legislators have openly expressed their concerns as recently as on Monday evening as the details of their clarity law will be ignored by their senate counterparts. Last week, the Chamber recognized that it would pour her own stable bill in favor of the Senate version rather than trying to reconcile the two laws.
Industry lobbyists have impatiently awaited the specific language of the Senate market structure bill, having so far received only a list of principles that the main republican legislators intended to follow its drafting. While lobbyists are waiting, the Senate of Agriculture Committee – one of the two signs which must register on the legislation – holds its opening audience on the subject on Tuesday afternoon.
Among the points of debate between the rooms, maybe the maturity test of the Clarity Act which would effectively attract a delimitation of the borders if a project belongs to the jurisdiction of the titles (SECOND) or surveillance of raw materials (CFTC).
“It’s great that the bill encourages blockchains to decentralize,” said Linda Jeng, founder and CEO of Digital Self Labs and an academic who focused on crypto. “But there could be involuntary consequences by granting the dry and the CFTC with the power to determine if a blockchain is” mature “.”
This is one of the central principles of the Clarity Act, the method by which a project can possibly move to a decentralized status which removes it from the scope of the securities regulations. And it is a component that some in the DEFI space argue are not managed fairly.
The initiates DEFI told Coindesk that there was not insufficient protection for the self -sufficiency of digital assets in the bill and that its maturity test would promote some projects in place, which makes it more difficult for new entrants to compete. They also shared concerns concerning the need to ensure that the federal pre -emption on the reigns of the patchwork of the states is clear, and a framework called to extend the current language on the exemptions for “digital goods” transactions to extend to “digital active ingredients”, because the DEFI projects were disseminated if they were kept to predetermine whether each did not imply a commodity under the definition of the law.
When the Senate takes the reins, the room will still be heard of cryptographic interests looking for such changes. And if he writes a bill on the structure of the different market, the Chamber may be forced to vote on this rewriting without making other modifications, if the situation with the law on engineering is repeated. The congress is already likely to press the initial deadline of Trump’s August for cryptographic legislation, and the president was impatient of results.
In the end, even the work of the Senate will not be the last word, because once a regulatory bill becomes law, relevant surveillance agencies must write their own rules to implement it – a complex process which can take more than a year to finish and longer to put it into force.
But the house must act first before one of the others can begin.
Progress of the house
As voting on the law on clarity, the lobbyists of digital assets are focused on the laser on the number of democrats who ultimately add their votes yes with the Republicans. During last year’s vote on the bill on predecessors, financial innovation and technology for the law of the 21st century (Fit21)71 Democrats threw their hat, although the Senate never acted.
This time, the defense of the hopes for another large bipartite number which will give the Senate an impact on the ideas of structure of the room market. (The Senate’s own genius attracted an impressive approval of 68-30 in a room used to scratch with thin votes of razor.)
The Democrats of the Democrats of the Chamber have chosen not to erect a roadblock for their own members on this bill, they will therefore be free to vote as they wish, said Rashan Colbert, director of American policies of the Crypto Council for Innovation, noting that the important development removing the contrary winds of the friendly cryptographic democrats.
“If we can get a bipartisan vote here, then it clearly becomes an essential priority,” said Colbert in an interview in Coindesk. “If it is a disappointing number, then I think it becomes more difficult,” he added. The representative of Maxine Waters, the classification democrat of the Chamber’s Financial Services Committee, tried to manage resistance to the bill. It has eminent allies in AFL-CIO and in the North American Securities Administration Association, the organization of securities regulators at the level of the state.
Consumer defenders have also weighed, with a coalition saying in a letter to Congress that the Clarity Act “guarantees that the cryptographic industry will receive treatment for children by captured regulators, by putting investors and the economy at risk”.
However, the industry is counting on a wide margin of democratic support – in particular young democrats who have regularly shaken their leadership on cryptographic issues.
“It was a long road to get here, and I think it is not practical to believe that we are going to be able to turn this type of momentum again,” said Colbert de CCI. “For those who want regulations, this is an important moment to concentrate and support the process.”
Read more: House is preparing for the vote on the structure of the cryptographic market on Wednesday, Stablecoins Thursday
