On May 14, the Senate Banking Committee voted 15 to 9 to advance the Digital Asset Market Clarity Act (CLARITY Act), with two Democrats crossing party lines to join all thirteen Republicans. The vote marks a turning point: after years of regulation by enforcement and a chronic lack of regulatory clarity, Congress is finally on the cusp of setting clear rules of the road. This is meaningful progress. But it is also deeply imperfect. The text that emerged from the Committee vote is the most substantive piece of digital asset legislation Congress has produced thus far, and yet two of its provisions threaten to undermine ... (full story)