US Senate Committee to Vote on CLARITY Act: What You Need to Know

Source: CryptoNewsNet Original Title: This Week, a Meeting Will Determine the Fate of Cryptocurrencies – Here’s the Date and Time Original Link: The CLARITY Act, expected to shape the future of the cryptocurrency market in the US, will be on the agenda of the US Senate Banking Committee on January 15th.

The committee will discuss the structure of the cryptocurrency market and vote on the bill at its session scheduled for January 15 at 18:00 (UTC+3, 10:00 ET).

Bill Objectives

The bill aims to combat fraudulent transactions, misleading trading activities, and inflated trading volumes. It also seeks to address long-standing regulatory uncertainties by requiring crypto companies to provide proof of reserves.

According to some analysts, if the CLARITY Act is enacted, manipulation rates in the cryptocurrency market could decrease by 70-80%. This, they suggest, could pave the way for a faster entry of large institutional funds into the crypto market by 2026.

Legislative Process

If the bill passes the committee, it will first be presented to the Senate General Assembly. If it is approved there, it will be sent to the House of Representatives. In the final stage, it will become law with the signature of the US President.

Key Debate Points

Several critical issues continue to create debate in the negotiations:

• Public Official Restrictions: Calls for an explicit provision prohibiting high-ranking public officials from profiting personally from cryptocurrency activities.
• DeFi Oversight: There are calls for decentralized finance (DeFi) projects to be subject to a similar oversight regime to that of federally regulated financial institutions.
• Stablecoin Yield Programs: The previously passed GENIUS Act prohibited stablecoin issuers from offering interest. However, there are interpretations that the new regulation could allow yield or reward programs through affiliates. While the banking sector argues that this would threaten the deposit system, White House crypto adviser Patrick Witt stated that these objections preserve the existing and problematic status quo. On the other hand, a major platform’s Chief Policy Officer argued that this issue has already been resolved with the GENIUS Act and that reopening the discussion would create uncertainty.