Cato Expert Discusses the CLARITY Act
I wanted to pass along a new piece from Cato Institute Director of Financial Regulation Studies Jennifer Schulp on the CLARITY Act.
lead
,
Today, the House Financial Services Committee and the House Committee on Agriculture will hold markups on the “Digital Asset Market Clarity Act of 2025,” aka the “CLARITY Act.” The CLARITY Act aims to create a clear regulatory framework for crypto.
All in all, the CLARITY Act is focused on many of the right questions, Schulp says, but there is also room for additional improvement:
,
For example, the bill relies too heavily on grants of discretion to the agencies to act within the “public interest or for the protection of investors”—essentially limitless concepts. And in other places it gives too little direction to the agencies for regulations they are required to promulgate, such as delisting of assets from trading platforms. The less discretion granted to the agencies, the less opportunity for future agencies to subvert congressional intent to create a pro-innovation regulatory framework for digital assets.
,
If you would like to speak with Schulp, please contact pr@cato.org to set up an interview.
