CLARITY Act · US Congress · New York · CoinDesk
Clarity Act Risks Regulation Without Oversight, Brookings Fellow Confirms
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Latest developments: Klein argued the Commodity Futures Trading Commission faces a dramatically larger mandate as lawmakers consider expanding its authority over digital assets.
Key facts
- What this means: The debate over the Clarity Act is increasingly becoming a debate over whether the CFTC can effectively police crypto markets
- Latest developments: Klein argued the Commodity Futures Trading Commission faces a dramatically larger mandate as lawmakers consider expanding its authority over digital assets
- Reading Klein sees a longer-term solution in closer coordination between U.S. market regulators
- The controversy: Klein sharply criticized allegations that political influence is affecting financial regulation
Summary
Klein said the CFTC was originally created to oversee commodity futures markets and was not built for the scale of responsibilities envisioned under current crypto legislation. He warned that giving the agency new powers without additional staff, funding and expertise could create the appearance of regulation without meaningful oversight. Klein expressed concern that regulatory capacity has been weakened by personnel departures and structural changes at the agency. What this means: The debate over the Clarity Act is increasingly becoming a debate over whether the CFTC can effectively police crypto markets.