Senate Banking Committee Republicans mounted a defense of the CLARITY Act ahead of a scheduled May 14 markup, rejecting claims that the bill would weaken securities law, create loopholes, or ignore illicit finance risks. They argued the legislation would instead assign regulator authority, require disclosures, and add anti-fraud protections across digital asset markets.
Senate Banking Committee Republicans defended the CLARITY Act ahead of a scheduled May 14 markup after criticism focused on investor protections, regulatory gaps, illicit finance, decentralized finance ( DeFi), and software developer liability. Their response followed publication of the bill text on May 11 and framed the measure as an alternative to fragmented oversight.
In a May 12 press release, lawmakers pushed back on claims that the proposal would weaken securities law. They argued digital asset securities would remain under Securities and Exchange Commission (SEC) authority, while covered entities would face disclosure obligations, resale restrictions, and anti-evasion compliance requirements. The release also presented SEC and Commodity Futures Trading Commission (CFTC) jurisdiction as a central issue, stressing:
