Tensions are rising in the U.S. House of Representatives — this time over access to vital information about the upcoming CLARITY Act, a bill set to reshape the regulatory framework for cryptocurrencies in the United States. Democrats are accusing the Securities and Exchange Commission (SEC) of refusing to share crucial documents with them — while allegedly quietly handing them over to Republicans.

📑 Standard procedure? Not this time

It's standard practice for the SEC to provide lawmakers with technical assistance (known as TA) — expert analysis that helps Congress understand how proposed laws might impact financial markets and the agency itself. This assistance is meant to be nonpartisan and accessible to both parties.

But Democratic staffers now claim that, in the case of the CLARITY Act, which could rewrite U.S. crypto policy, the SEC broke precedent. Republicans reportedly received a detailed written analysis, while Democrats say their own requests were rejected on grounds of confidentiality.

“This is a major departure from how the SEC has always operated,” said one Democratic aide. “Technical assistance is supposed to be neutral. This feels political.”

🏛️ The CLARITY Act and its wider impact

The CLARITY bill is set to be discussed in committee on June 10. Democrats worry that the legislation could weaken SEC oversight of crypto and create loopholes that traditional financial players could exploit by adopting blockchain-based systems.

During a recent call with SEC officials, multiple Democratic aides say their questions were either left unanswered or only vaguely addressed, raising concerns that the agency might be deliberately withholding information. “It felt like they were trying to hide the ball,” said one participant.

✉️ Maxine Waters calls for equal access

Democratic Representative Maxine Waters now plans to send a formal letter to the SEC Chair, requesting that the agency share its written analysis with both parties, just as it did previously during deliberations over the FIT21 bill.

In the letter, Waters argues that the bill has major implications for:

🔹 the digital asset regulatory landscape

🔹 investor protection

🔹 capital formation

🔹 market competition

🔹 the SEC’s ongoing rulemaking

Without proper analysis, she says, policymakers are operating in the dark.

🕳️ Tech loopholes and regulatory uncertainty

Democrats warn that the CLARITY Act could create technology-based loopholes that may be hard to close once blockchain systems are adopted by traditional sectors. “The SEC has historically strived to be technologically neutral,” one aide noted. “Its rules aren’t supposed to become outdated as soon as new tech arrives.”

Whether these concerns will impact the upcoming vote remains to be seen. The bill currently has strong backing from Republicans and a handful of pro-crypto Democrats, but internal tensions could shift the outcome.

⚠️ Trump’s crypto ties add fuel to the fire

Some Democrats also point to former President Donald Trump’s personal involvement in crypto ventures as a reason for skepticism toward the bill. That alone may make it hard for certain lawmakers to offer support.

Others argue that the SEC’s lack of cooperation is a more immediate problem — and one that could drive even crypto-friendly Democrats away from the proposal.

“It’s impossible to fully understand what this bill does — where the gaps are, how to fix or improve it — without feedback from the agency,” said one aide. “And that feedback is being withheld.”



#SEC , #crypto , #Regulation , #USPolitics , #TrumpCrypto

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