Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise today on behalf of nearly 44 million American consumers who have invested in, traded, or used digital assets. That is one in five Americans. The public interest in…
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise today on behalf of nearly 44 million American consumers who have invested in, traded, or used digital assets. That is one in five Americans. The public interest in these markets is already here, and it is not going away.
Under the status quo, there is a gap in regulation for the digital commodity asset market. Our work here today could begin to provide the protections that American investors are accustomed to in traditional financial markets that are regulated by the CFTC.
Regardless of whether Congress acts, these markets will continue to grow. The only question is whether we will begin the hard work of developing regulation or refuse to begin.
The CLARITY Act would put consumer protections in place for the first time for this industry. Consumers will finally be protected by the same sort of guardrails that protect investors in other sectors of the economy: segregation of customer deposits, consumer disclosures, mandatory recordkeeping, and examination by regulators. We do not want another FTX.
The 2022 collapse of the world's third largest cryptocurrency exchange wiped out an estimated $8 billion to $10 billion in value, leaving American consumers holding the bag. The CLARITY Act would have largely mitigated or avoided this crisis entirely.
Former Biden administration CFTC Chairman Russ Behnam testified yesterday before the Senate Agriculture Committee:
`` . . . inaction will only result in greater risk to our financial markets and investors, through lack of market transparency, fraud, market manipulation, corruption, and conflicts of interest.''
That is lack of action.
Mr. Speaker, let me address the elephant in the room: the First Family's involvement with digital assets and personally profiting from them.
It has rightfully raised questions of impropriety and alarmed government ethics watchdogs. The First Family's personal financial involvement in other sectors, such as telecoms, should ring alarm bells, as well, loud and clear as it comes to ethics in our country.
There is a time and place for holding the powerful accountable, and that must happen. We should address executive branch corruption independently, and it should apply to all sectors.
Today, we must focus on regulation and protections for consumers because, today, one in five Americans, and growing, lack those protections and lack any guardrails. It is our job to start putting them in place.
Is this bill perfect? No. Can it be improved upon? Absolutely, and I encourage my Senate colleagues to keep working on those outstanding issues.
This bill deserves our support, and I urge my colleagues to vote ``yes.''
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield 3 minutes to the gentleman from North Carolina (Mr. Davis), my distinguished colleague and the ranking member of the House Agriculture Subcommittee on Commodity Markets, Digital Assets, and Rural Development.
Mr. Speaker, I yield an additional 30 seconds to the gentleman from North Carolina.
Mr. Speaker, I yield 2 minutes to the gentlewoman from Michigan (Ms. McDonald Rivet), my distinguished colleague who serves on the House Agriculture Subcommittee on Commodity Markets, Digital Assets, and Rural Development.
Ms. McDONALD RIVET. Mr. Speaker, I rise today to voice support for the CLARITY Act. While there is still work to be done, it is an important step in providing crucial and clear regulatory framework to the crypto industry.
Let's break it down. Today, one in six U.S. adults, 17 percent of the population, are invested in or use cryptocurrency. That is 55 million Americans. There is more than $3 trillion invested in the industry. It is dangerous and irresponsible that a market of this size and scope is currently operating without a clear regulatory framework. For consumers, innovators, and the stability of our Nation's economy, the CLARITY Act is an important first step forward.
It protects consumers and equips assigned agencies with the appropriate authority to provide efficient and thorough oversight over digital asset markets. It also provides desperately needed certainty so that businesses can grow and evolve.
I will be clear: If the CLARITY Act had been in place, the FTX market crash that caused their customers to lose $8 billion would not have happened.
This bill strengthens our national security by giving regulators the tools they need to track cross-border transactions and stop digital assets from being used to evade sanctions or fund our adversaries.
The bill is not perfect, and it does not resolve every issue. Like many of my colleagues, I am deeply concerned about the Trump family's potential conflicts of interest in using crypto to profit from the Office of the Presidency. That is why I voted for amendments to impose guardrails to stop elected officials from improperly profiting off trades, and I will continue to push strongly for solutions to this problem.
However, we cannot let the perfect be the enemy of the good. We stand at a critical moment where market structure is critical for our consumers, economy, and security, and the CLARITY Act moves us meaningfully forward.
Mr. Speaker, I yield 2 minutes to the gentleman from Alabama (Mr. Figures), my distinguished colleague.
Mr. Speaker, I yield 2 minutes to the gentleman from New Jersey (Mr. Gottheimer), my distinguished colleague who serves on the House Financial Services Committee.
Mr. Speaker, I have no other speakers at the moment. I continue to reserve the balance of my time.
Mr. Speaker, I am prepared to close, and I reserve the balance of my time.
Mr. Speaker, I yield myself the balance of my time to close.
Mr. Speaker, I, too, would like to thank the gentleman from Pennsylvania, Chairman G.T. Thompson, and his team for working on this consumer protection legislation in a bipartisan manner.
I believe bipartisan legislation is always preferable to partisan legislation. It is stronger. It is harder to undo when it has broad support and leadership changes overnight.
I heard my chairman talk about the farm bill. I regret that it wasn't a bipartisan path through reconciliation for farm bill provisions, but I am optimistic that we can work together in many other areas.
While I wait to see what the gentleman has in store for us for farm programs left behind, I, too, agree that rural development is incredibly important, Mr. Speaker. I hope that the bipartisanship shown through the CLARITY Act process can act as a reminder that we accomplish more and we go further when we work together.
Mr. Speaker, I yield back the balance of my time.
Mr. Speaker, on that I demand the yeas and nays.