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Crypto Market Regulation Is Running Out of Time at the Finish Line

Crypto Market Regulation Is Running Out of Time at the Finish Line

The CLARITY Act was supposed to resolve a relatively straightforward, if technically difficult, question: When is a digital asset a security, when is it a commodity, and which federal regulator is responsible for overseeing the companies that trade it?

After more than two years of committee hearings, industry lobbying, draft legislation and bipartisan negotiation, Congress is closer than it has ever been to answering that question. The House has passed a market-structure bill by a wide margin. The Senate Banking Committee has approved its own amended version. The measure now sits on the Senate legislative calendar.

Yet the bill’s most difficult remaining problem may no longer be market structure. It is political structure.

With the…

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