The crypto sector is in feverish anticipation of the approval of the US Clarity Act.
Yesterday, for example, the CEO of Tether, Paolo Ardoino, published an explicit post: “the Clarity Act is coming”.
The fact is that on the one hand approval actually seems possible within a relatively short time, and on the other the positive effect on the American and global crypto sector could be significant.
Approval of the Clarity Act
Today the US Senate Banking Committee will hold a session of amendments and a vote on the updated version of the Digital Asset Market Clarity Act bill.
The final draft of the text that will be put to a vote today was made public only a few days ago, and includes rules on stablecoins, division of responsibilities between the SEC and the CFTC, protections for DeFi developers, classification of digital assets, and anti-illicit measures.
The bill has already been approved by the House, back in July of last year, with a bipartisan vote, but once it reached the Senate its process stalled.
For example, more than 100 amendments were submitted, probably with the clear intention of slowing down or blocking its approval. Not only is there opposition from a large group of Democrats, but there are also banking lobbies opposed to some points, such as the yields on stablecoins.
After partial mediation, however, an amended draft of the text was produced, and today the Senate committee that deals with financial matters will have to approve or reject it.
It must be said, however, that even in the event of a favorable vote, this will not be the final approval at all.
In fact, today’s vote only serves to approve the final draft of the text to be sent to the Senate itself for a vote, because it is certainly not the Banking Committee that can legislate.
Moreover, even if the draft is approved today, and the Senate subsequently votes in favor (which will, however, have to be bipartisan), in order to become law the Clarity Act will still have to go through one last step in the House, since the text has been amended, and then, in the event of final approval, it will also require the President’s signature, which however seems a given.
The wait in the crypto sector
The wait in the crypto sector is feverish.
Even the possible approval today of the draft text would already be a big step forward, because just as the House approved the first draft with a bipartisan vote, if the draft approved by the Banking Committee reaches the Senate it is possible that the Senate will approve it.
Presumably, however, it will still take days, as will the subsequent further (and hopefully final) step in the House, which probably will not be immediate at all.
According to many operators in the crypto sector, the Clarity Act could be a huge catalyst for institutional adoption and regulatory clarity of cryptocurrencies in the USA, and consequently also in the rest of the world.
Technically, in fact, it would represent the first complete regulatory framework for digital assets in the USA, so much so that the American crypto sector considers it a historic turning point, thanks to the shift from “regulation by enforcement” to clear and predictable rules.
The consequences
First of all, the Clarity Act should bring regulatory clarity on crypto in the USA and a clear division between the tasks of the SEC and those of the CFTC.
It should be remembered that the US crypto sector is the most important in the world, among those of the various nations, if only for the fact that all the main crypto ETFs are managed and traded by US operators on the American market.
The Clarity Act should put an end to the uncertainty that has held back institutional investments in the crypto sector in the USA for years.
Moreover, Bitcoin, Ethereum, and similar cryptocurrencies will legally become decentralized commodities, and this should especially benefit those linked to mature blockchains with broad usage, extensive networks, and relatively low concentration of token ownership.
The Clarity Act could even bring greater liquidity to the crypto market, thanks to more ETFs and greater adoption by banks and funds.
Specific rules
The most interesting specific rules seem to be those relating to stablecoins, as evidenced by Tether’s feverish anticipation.
For example, there will be an obligation to hold 1:1 reserves and to have clear supervision for issuers.
A ban will be introduced on yield or passive interest on stablecoins held by US customers. Only rewards linked to real activities (payments, transfers, etc.) will be allowed.
This should generate more security and trust for retail investors, but less appeal for those who used stablecoins for passive yield farming (something strongly desired by the banking lobby).
Other specific rules will concern DeFi.
For example, open-source developers, non-custodial wallets, and operators of DeFi nodes and protocols will no longer be considered money transmitters, unless they control users’ funds. However, exceptions will be provided only for those who deliberately assist criminal activities.
In this way, thousands of US developers will be able to innovate without risking sanctions or criminal penalties.
Conclusion
For the crypto sector, the approval of the Clarity Act could be a huge boost in legitimacy and long-term growth, while for retail investors it should increase safety thanks to a reduction in risky practices.
For crypto companies, on the other hand, it will be possible to achieve greater compliance and a green light to scale.
Go to Source
Author: NixCoin