With Congress not scheduled to return from recess for a few weeks, some US lawmakers are already signaling how they plan to address crypto-related legislation passed by the House of Representatives in July.
In a Sunday MSNBC Interview, Massachusetts Senator Elizabeth Warren, one of the more outspoken voices associating digital assets with illicit activities, said she supported regulation of the crypto industry. However, she suggested opposition to crypto market structure through the Digital Asset Market Structure Clarity (CLARITY) Act, introduced by Republicans and passed with bipartisan support in the House.
“We need crypto regulation,” said Warren. “But we don’t need regulation written by the crypto industry that supercharges this kind of corruption. We need regulation that limits the corruption and the ability of elected officials to trade in it, that also limits the ability to blow up the economy with crypto.”
Warren’s statement signaled that she planned to double down on her efforts to rally Democratic opposition to the CLARITY Act, which is expected to be considered in the Senate starting in September.
Republican leaders at the Senate Banking Committee said in June that they planned to pass the bill by Sept. 30.
Related: White House crypto rules bring SEC-CFTC clarity for US crypto firms: Lawyer
First stablecoins, then crypto market structure, then CBDCs?
In July, many House Democrats sided with Republicans to pass the CLARITY Act, a bill restricting a US central bank digital currency, and legislation to regulate payment stablecoins, the GENIUS Act.
The GENIUS Act, having already been passed by the Senate, was signed into law by President Donald Trump the same week, while the other two bills are expected to be addressed after the congressional August recess.
The White House has also been weighing in with recommendations for crypto market structure. On July 30, a digital asset task force established under Trump offered recommendations for regulatory clarity with a breakdown of the roles the United States’ financial regulators, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), would have over certain tokens.
“[W]ithout a clear and comprehensive classification system, market participants have had to navigate a patchwork of interpretations and guidance—a proverbial minefield for honest actors trying to lead the industry forward,” said the report. “A clearer, agreed-upon taxonomy is essential to ensure both the healthy development of the digital asset ecosystem and consumer and investor protection.”
Lawmakers in the Senate are expected to return to work the day after Labor Day, on Sept. 2.
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