The amendment to the CLARITY Act, which calls for establishing a regulatory framework for SEC and CFTC digital commodity offerings, has been approved.

BlockBeats News, May 15 — Republican Senators proposed an amendment during the Senate Banking Committee review of the CLARITY Act, calling for the establishment of a regulatory framework by the SEC and CFTC for the issuance and sale of digital commodities, providing enforcement for investor and consumer protection.

Democratic Senator Warren opposed the amendment, calling it the “No. 9 Cloak of Shame.” She claimed it was meant to restore state-level protections for consumers and investors, as well as the ability for harmed investors to sue, but it is full of exceptions, conditions, and loopholes, making it essentially meaningless. One of the most serious and fatal flaws of the amendment is that it strips away state enforcement authority. As the crypto industry develops, scams are also increasing, and state-level police are the only line of defense for law-abiding Americans. If this amendment actually did anything, I would support it. But in reality, it does nothing — it’s just fooling people into thinking something has been done.

The amendment was passed with 18 votes in favor and 6 votes against. The “Crypto Market Structure Act” (i.e., the CLARITY Act) is currently being debated and voted on line by line.