TechFlow, June 5 — According to The Block, the U.S. House Committee on Financial Services held a hearing on the Clarity in Transactions for Cryptocurrencies Act (CLARITY). Proposed by Republican representative French Hill, the bill aims to establish a clear regulatory framework for cryptocurrencies, define the oversight responsibilities of the SEC and CFTC, and require digital asset companies to provide disclosure to customers and segregate customer funds.
However, recent activities by Trump in the cryptocurrency space have become a major obstacle to advancing the bill. Democratic lawmakers have raised concerns over actions by World Liberty Financial—a platform backed by Trump—including launching and issuing stablecoins, releasing commemorative coins, and hosting dinners for major holders. New York Representative Gregory Meeks said the president's conduct was "extremely egregious" and has distracted from discussion on the bill itself.
Democratic lawmaker Jim Himes emphasized that he will vote against the bill and urge all Democrats to oppose it unless conflict-of-interest provisions are added. Nonetheless, the bill has gained support from some Democratic members, and the House Committee on Financial Services may consider the legislation as early as next week, while the Senate also plans to begin drafting its market structure bill next week.
