BlockBeats report: On May 15, U.S. Senator Smith proposed an amendment during the Banking Committee’s review of the CLARITY Act, stating, “I believe we can all agree that crypto assets are extremely volatile—a single tweet can cause dramatic price swings. For example, Bitcoin has fallen nearly one-third since hitting its all-time high last October, and its value has dropped more than half since its peak. And these are just the two most dominant assets in the crypto market. During the 2022 crypto collapse, nearly $2 trillion in crypto asset value vanished. I am deeply concerned that the current version of the bill under consideration today will ensure that the next collapse is even larger than the one in 2022. Therefore, the purpose of this amendment is simple: to prohibit federal agencies from bailing out digital assets and prevent American taxpayers from footing the bill. When that happens—and I should say ‘when that happens’—taxpayers should not be dragged in.”
Senator Cynthia Lummis opposed the amendment, stating that the CLARITY Act does not authorize a bailout of the crypto industry. It establishes rules for digital assets without creating bailout guarantees or taxpayer backstops. The amendment is unnecessary and distracts from the bill’s core purpose. We should focus on building a clear regulatory framework rather than banning something that doesn’t yet exist.
The amendment was defeated with 11 votes in favor and 13 votes against. The Crypto Market Structure Act (also known as the CLARITY Act) is currently undergoing line-by-line debate and voting on amendments.