SEC Chair anticipates Clarity Act approval this month

Bitcoin Magazine

‘Crypto Capital of the World’: SEC Chair Expects Clarity Act to Pass This Month

The chief regulator on Wall Street stated that the highly anticipated Clarity Act is expected to pass this month, placing the U.S. firmly on course to become the “crypto capital of the world.”

During a Tuesday appearance on Fox Business, Securities and Exchange Chairman Paul Atkins verified that the regulatory agency is actively advancing rules designed to support the cryptocurrency sector.

Lawmakers favoring cryptocurrency previously aimed to pass the Clarity Act before the August congressional recess, though the vote was ultimately pushed back to September. This legislation creates a regulatory framework to separate digital assets into categories including securities, commodities, and stablecoins.

“The Clarity Act will be voted on in the Senate on the 15th of September,” Atkins noted. “I anticipate and hope that it will be passed by the Senate and sent ultimately to the President’s desk for a signature.”

He further commented: “We’re changing the past approaches to try to update [rules], modernize them in the age of blockchain and crypto assets.”

Even though the Clarity Act vote faced postponement, both the SEC and the Commodity Futures Trading Commission confirmed they would continue moving forward to shape digital asset policy.

The SEC submitted a proposal to the White House last week with the goal of “clarifying the framework for the custody of crypto assets” directed at companies and investment advisers.

Although the House of Representatives approved the Clarity Act last year, the legislation experienced months of deadlock this year following conflicts between lawmakers, crypto companies, and the banking lobby concerning whether trading platforms like Coinbase ought to offer yield to customers.

Certain lawmakers attempted to adjust the ethics-related language in the legislation, leading to the circulation of a new bill in July that prohibits government officials from profiting from or promoting cryptocurrency.

However, some Democratic lawmakers argued that the new measure remained inadequate, while various pro-crypto Republicans claimed that Democrats were intentionally delaying the bill for political reasons.

Frequently Asked Questions

When is the Senate vote for the Clarity Act?

The Senate is scheduled to vote on the Clarity Act on September 15.

What is the main purpose of the Clarity Act?

The bill establishes a regulatory framework to distinguish whether digital assets function as securities, commodities, or stablecoins.

Who is the Chairman of the SEC?

Paul Atkins serves as the Chairman of the Securities and Exchange Commission.

Why was the Clarity Act delayed?

The legislation faced deadlock due to clashes over yield payments on platforms like Coinbase, debates over ethics language, and political disagreements between lawmakers.