Solana Policy head says US CLARITY Act could become global standard

The U.S. CLARITY Act, a key piece of cryptocurrency regulation, is poised to become a global standard if it passes an upcoming Senate floor vote, according to Kristin Smith, head of the Solana Policy Institute. Speaking to Decrypt, Smith noted that last year's GENIUS Act, which regulated stablecoins, had a ripple effect, prompting countries like South Korea, the United Kingdom, and Canada to adopt similar frameworks. She predicted the CLARITY Act would have a comparable global impact. The bill addresses stablecoins, DeFi, and anti-money laundering provisions. Its central feature is an amendment to existing securities laws that would place most cryptocurrencies under the jurisdiction of the Commodity Futures Trading Commission (CFTC) rather than the Securities and Exchange Commission (SEC). While the crypto industry is optimistic about the bill's passage, it faces opposition from some lawmakers, including Senator Elizabeth Warren. Opponents argue the legislation could weaken global regulations, making cryptocurrencies a channel for terrorist financing and sanctions evasion. The CLARITY Act is expected to face a Senate floor vote in June. If it passes, it must be reconciled with the House version before being signed into law by the president. However, some investment banks have expressed skepticism that the bill will pass this year.