The Clarity Act, one of the most important legislative bills regarding cryptocurrency regulation in the US, is rapidly progressing.
At this point, Clarity, also known as the Transparency Act, is scheduled to be discussed and voted on by the Senate Banking Committee on May 14.
In the latest development, the US Senate Banking Committee has released a new, revised 309-page draft of the CLARITY Act, which has been under preparation since January.
While developments regarding the CLARITY project are being closely followed, Cardano (ADA) founder Charles Hoskinson also commented on CLARITY.
At this point, Hoskinson described the latest draft as a significant improvement over previous versions of the law. Hoskinson had criticized earlier drafts due to concerns about protections for decentralized finance activities. However, the newly revised draft addressed several areas that crypto companies had previously objected to.
In his latest comment, Cardano founder Charles Hoskinson stated that the CLARITY Act, a cryptocurrency regulation bill currently under consideration in the US Congress, must include a provision (Section 604) to protect open-source developers.
Hoskinson dismissed calls to remove this clause as “absurd,” arguing that it would unfairly hold developers responsible for crimes committed by unknown individuals who used their software without authorization.
Hoskinson added that such a move would pose a serious threat to the open-source innovation environment.
Coinbase reviewed the final details of the draft text as discussions continued between crypto companies and banking groups. The exchange participated in discussions regarding the stablecoin yield provisions in the revised legislation. As a result, the company welcomed various compromise measures included in the updated text.
Banking groups, however, continue to voice objections despite recent revisions to the stablecoin sections. Rob Nichols, CEO of the American Bankers Association, urged bank executives to communicate remaining concerns with senators, warning that the bill could increase the risk of deposit flight for traditional banks.
*This is not investment advice.
