CLARITY Act is at a critical juncture in the US Senate, as Ripple calls on the policymakers to pass the act before Congress goes into recess from August 7. The CLARITY Act has now emerged as the most important issue in the crypto community, as it seeks to provide a legal framework for cryptocurrencies.
The new efforts come just as President Donald Trump is scheduled to hold talks with Republican senators at the White House this Thursday regarding the bill. The industry hopes that the talks will bring the bill closer to its passage in the near future.
Ripple Says CLARITY Act Will End Regulatory Uncertainty
Ripple claims that the passage of the CLARITY Act marks an important stride toward the creation of a regulatory framework for cryptocurrency in America. According to Ripple, the passage of the CLARITY Act will establish regulations in lieu of the years of ambiguity that have existed before.
Stuart Alderoty, Ripple’s chief legal officer, cautioned that rejection of the bill would mean that everything would remain as is, leaving room for regulatory gaps.
“A vote for the CLARITY Act means not voting for maintaining the same lack of regulation for those same nefarious individuals to abuse,” Alderoty added. “We’ve seen the movie before. We don’t have to see the sequel.”
Since the company has been spending years in court battling the United States Securities and Exchange Commission over XRP, the management at Ripple is convinced that the crypto industry needs regulations introduced via Congress rather than enforced.
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Consumer Protection Remains a Major Goal
Lauren Belive, the Head of US Public Policy for Ripple, described the CLARITY Act as an attempt to fill gaps in regulation in order to enhance consumer protection.
As reported by her, the failure of FTX highlighted some deficiencies in the existing system, whereby there were no guarantees for consumers. According to Belive, the proposed bill will help distinguish the areas where the SEC and CFTC will transparently exercise control, together with compliance standards.
In addition, Belive said that responsible companies are already striving to comply with the rules; however, consumers need protection that is put in writing.
Coinbase Also Supports the CLARITY Act
Coinbase has also been strongly supportive of the CLARITY Act, which would see Congress make the gains of recent regulation into actual legislation.
According to the exchange’s Chief Policy Officer, said thet regulators have already begun to use more sensible methods when it comes to dealing with crypto assets, but legal clarity must be obtained via legislation.
CLARITY Act Faces Final Senate Hurdle
Even as the CLARITY Act receives backing from major cryptocurrency firms, there is one hurdle that remains before the legislation in the Senate.
Many members of the Democratic Party wish to have tighter restrictions on ethics regarding the participation of public officials in the crypto business before voting for the bill.
However, it seems like the talks are heading towards a successful conclusion. In fact, Senator Thom Tillis stated that legislators were near an agreement, and Senator Cynthia Lummis noted that a new draft of the bill is soon going to see the light of day.
With President Donald Trump joining the talks and legislators trying to reach some kind of compromise, the next few days may define the future of the CLARITY Act.
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