CLARITY Act: Protecting U.S. Interests
On November 8, U.S. Representatives Zach Nunn (R-Iowa) and Abigail Spanberger (D-Va.) introduced a bill called the Creating Legal Accountability for Rogue Innovators and Technology (CLARITY) Act. If approved, the bill will establish new laws that will significantly limit how U.S. government officials engage with blockchain companies based in China, including exchanges and stablecoin issuers.
Impact on National Security
The bill aims to protect national security by preventing government officials from interacting with Chinese crypto firms, including Tether Holdings, NEO, and the Blockchain-based Service Network (BSN). It also seeks to safeguard the private data of Americans stored in public blockchains anchored by infrastructure in China.
The bill has been referred to the House Committee on Oversight and Reform, and no voting date has been set.
U.S. Active In The Crypto Regulatory Front
In 2023, multiple crypto-related bills have been proposed in the U.S., including the Financial Innovation and Technology Act (FIT), which aims to create a regulatory framework for digital assets. It proposes that the Commodity Futures Trading Commission (CFTC) oversee crypto assets, potentially legitimizing crypto and allowing more institutions to explore the industry.
Additionally, the Clarity for Payment Stablecoins Act seeks to provide regulatory clarity for stablecoins, potentially accelerating their adoption as a means of payment in the U.S.
Hot Take: Implications of CLARITY Act
If the CLARITY Act becomes law, it could have significant implications for China-based crypto firms like Tether Holdings and NEO. The restrictions on interactions with U.S. government officials may impact their operations and influence the broader cryptocurrency ecosystem. Additionally, it reflects the U.S.’s active engagement in shaping regulations for emerging technologies like blockchain and digital assets.
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