Now, with the launch of the Clarity Act, only two weeks are left. Senators combined two earlier versions into one new draft. The Senate goes on break in 2 weeks. The bill must pass before then, or it will wait months.
The Clarity Act, also known as the Digital Asset Market Clarity Act, is a bill in the U.S. Senate. This aims to create a clear rule and regulations for cryptocurrency in the United States.
It is currently completely unclear which government agency is responsible for crypto. SEC, the Securities and Exchange Commission, or the CFTC, the Commodity Futures Trading Commission.
This confusion is hard for crypto companies to understand. They actually don’t know what rules to follow. The Clarity Act tries to fix this by clearly dividing responsibilities between regulators.
Aims to protect everyday investors. Government officials, such as the President, Vice President, members of Congress, judges, and their spouses, are refused from launching or promoting their own crypto coins while in office.
Those officials can still hold crypto as normal investment. But they are unable to profit from creating. They are punished for breaking the rule. Like giving back all profits, plus a fine of 10% of earnings or $500,000, whichever is smaller.
This ethics rule expires on January 20, 2029. When the next president takes office. The Main Debate is that the democrats feel the rules are not tough enough.
It expires in 2029, so nothing can be checked later. Trump could still profit from crypto coins that already carry his name. Trump reportedly made $1.4 billion from crypto last year. Democrats want stronger accountability. This is the strictest ethics rule any president has ever agreed to. It applies to many officials, not just Trump.
Now, with the launch of the Clarity Act, only two weeks left. Senators combined two earlier versions into one new draft. The Senate goes on break in 2 weeks. The bill must pass before then, or it will wait months.
This is a rule about Trump’s crypto businesses, as he made $1.4 billion from crypto last year. The Justice Department would enforce this rule. They don’t trust the Justice Department for actually punishing Trump. The rule stops applying once a new president takes office.
It’s an election year. Democrats can use “Trump made $1B from crypto” as a campaign issue. Some people also have separate concerns about the bill.
The crypto industry mostly wants it passed. They say that it protects investors better than having, no law at all.
Motion to proceed was expected on Monday or Tuesday, July 27 or 28. So, the ethics deal needed by Thursday, July 30. And the final vote must likely come the week of August 3, right before recess.
Clarity Act Explained Despite Senate Vote Schedule: What Happens Before the August Recess was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.