BlockBeats report, on May 15, Republican senators proposed an amendment during the Banking Committee's review of the CLARITY Act, calling for the establishment of a regulatory framework by the SEC and CFTC over the offering and sale of digital commodities, to provide investor and consumer protection enforcement.
Senator Warren opposed the amendment, calling it the “Ninth Patch.” She argued that while it claims to restore state-level consumer and investor protections and the ability of harmed investors to sue, it is riddled with exceptions, conditions, and loopholes, rendering it essentially meaningless. One of its most serious and fatal flaws is that it strips states of their enforcement authority. As the crypto industry grows, scams are growing alongside it—and state regulators are the only line of defense for law-abiding Americans. If this amendment actually did something, I would support it. But in reality, it does nothing; it merely deceives people into thinking it does.
The amendment was passed with 18 votes in favor and 6 against. The Crypto Market Structure Act (also known as the CLARITY Act) is currently undergoing line-by-line debate and voting on the amendments.