The United States Senate is about to move forward on the CLARITY bill, and Ripple and Coinbase have recently focused on calling for Congress to pass as soon as possible. The bill is seen as an important development in United States legislation on digital asset regulation, with a focus on a clear division of regulation and the establishment of clearer standards of compliance for the encryption market.

Ripple claims that opposition to the bill will perpetuate chaos.

The Chief Justice of Ripple, Stuart Alderotey, said that if the bill was rejected, the current regulatory gap and law enforcement uncertainty in the United States encryption market would continue, leaving an opportunity for undesirable participants.

According to Ripple, the industry has been subject to “law enforcement instead of legislation” regulation for the past few years. After long litigation by the SEC around XRP, companies are promoting statutory law to clarify market rules rather than continuing to rely on case law enforcement.

The Act focuses on the division of labour between SEC and CFTC

According to Ripple, the head of public policy in the United States, Lauren Belive, opposition to the bill is tantamount to maintaining the status quo and the existing system does not effectively protect consumers. She claims that the regulatory gaps revealed by the FTX collapse have not yet been fully filled.

According to the proponents, the CLARITY bill would more clearly delineate the regulatory responsibilities of the United States SEC and the Commodity Futures Trading Commission (CFTC) for digital assets, while establishing clearer compliance requirements to inform market participants and investors who are responsible.

  • Clarify the regulatory boundaries of SEC and CFTC
  • Establishing uniform compliance standards for digital assets
  • Improving investor predictability of regulatory attribution

Coinbase joined the lobby and the Senate is still negotiating.

Coinbase also publicly supported the bill. The head of corporate policy stated that the regulatory authorities had recently begun to take a more rational policy direction towards encryption, but Congress still needed to formalize those changes in order to avoid a reeling of policies.

However, the greatest obstacle is still at the stage of negotiations in the Senate, particularly with regard to the ethical provisions surrounding the interests of public officials in the encryption business. Reports indicate that the Democratic Party wishes to join more stringent restrictions as one of the conditions for supporting the bill and helping it cross the 60-voting threshold.

Senator Thom Tillis said that the parties had reached an “near” agreement, and Senator Cynthia Lummis suggested that the revised draft might be ready soon. Trump is expected to discuss the bill with the Senators at the White House on Thursday, and Congress will enter a recess on 7 August, and the outcome of consultations over the next few days will affect whether the bill will continue.