The Digital Asset Market Clarity Act, a major US digital asset legislative proposal, has been delayed in the US Senate until September. The act aims to divide regulatory power between the SEC and CFTC, but has sparked intense debates over privacy, developer liability, and anti-money laundering enforcement.
Regulatory Framework
A updated 616-page text of the act has been released, which assigns spot market authority over digital commodities to the CFTC and investment contract assets to the SEC. The bill also seeks to protect software and blockchain developers and decentralized networks that do not hold customer assets from illicit liability.
Opposition and Concerns
Lawmakers remain divided over the act, specifically concerning ethics enforcement authority, anti-money laundering scope for decentralized finance, and federal powers over privacy tools. Major banking groups have warned that the act leaves critical anti-money laundering gaps, inviting illicit finance risks and threatening traditional financial safeguards.
Industry Support
Despite opposition, major financial institutions including BlackRock, Fidelity, and Goldman Sachs have publicly urged passage of the bill. The Fraternal Order of Police has also written a letter supporting the act, reversing its previous opposition.
