U.S. House Financial Services Committee Chairman French Hill said he wants to push the CLARITY Act through during the lame-duck session of Congress following next month’s midterm elections. Hill said the U.S. needs permanent legislation to make sure it stays ahead in digital assets and blockchain technology, arguing that rulemaking alone cannot deliver the same level of certainty as an act of Congress.
Hill, who previously backed the FIT21 Act, said the Securities and Exchange Commission and the Commodity Futures Trading Commission are currently using their existing authorities to define digital assets and digital commodities. Even so, he said those policy tools do not replace legislation.
The bill faced a setback last month in the Senate, where a cloture vote failed to secure the number of votes required to end debate. The final tally was 49 in favor and 50 against. According to Bitcoin.com News, analysts said agency rules are easier for a new administration to revise or roll back, making them less durable than statutory law. Law firm Troutman Pepper Locke also said a future administration could change how rules are interpreted and where enforcement efforts are directed.
U.S. House Financial Services Committee Chairman French Hill said he hopes to secure passage of the CLARITY Act during Congress’ lame-duck session after next month’s midterm elections.
Hill said the United States needs permanent legislation to ensure it remains a leader in digital assets and blockchain technology.
Hill says agency action cannot replace legislation
Hill, who previously pushed the FIT21 Act, said the U.S. Securities and Exchange Commission, or SEC, and the U.S. Commodity Futures Trading Commission, or CFTC, are using their current regulatory authority to define digital assets and digital commodities. He said those policies are still not enough to substitute for a legislative framework.
Senate vote fell short last month
Last month, the CLARITY Act failed to win the votes needed in a Senate cloture vote to end debate. The tally was 49 votes in favor and 50 against.
According to Bitcoin.com News, analysts said agency rules can be more easily changed or withdrawn by a new administration, limiting the certainty they can provide compared with congressional legislation. Law firm Troutman Pepper Locke also said a future administration could alter rule interpretations and enforcement priorities.
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