Democratic House staffers in the USA have accused the U.S. Securities and Exchange Commission (SEC) of refusing to provide necessary analysis on the crypto market structure bill, known as the CLARITY Act, while providing this information to Republicans. This incident raised concerns about transparency and the bill's impact on financial markets, including cryptocurrency. This article analyzes the controversy in detail, the bill's content, and its implications for the crypto industry, particularly in the context of Bitcoin hitting $110,000 (according to Binance, June 4, 2025).

Controversy between Democrats and the SEC

On June 3, 2025, Democratic House staffers, part of the House Financial Services Committee, accused the SEC of failing to provide a technical analysis (TA) on #CLARITYAct – a bill aimed at establishing a regulatory framework for the cryptocurrency industry in the USA and amending foundational securities laws. Typically, the SEC provides TA to both parties to help lawmakers understand the bill's impact on the agency and financial markets. However, Democratic staffers reported being denied this material, while Republicans received detailed analysis from the SEC.

A Democratic staffer called this a 'serious break' with precedent, emphasizing that TA is a non-political document that needs to be shared fairly. During a call on May 29, 2025, Democratic staffers' questions about the bill's impact on traditional stock markets were not adequately addressed. The SEC responded that they provide technical assistance to any legislator who requests it, but did not specifically comment on the Democrats' accusations.

Content and impact of the CLARITY Act

The CLARITY Act, expected to be reviewed by the House Financial Services Committee on June 10, 2025, aims to create a regulatory framework for the cryptocurrency industry, reducing the oversight role of #SEC . This bill is supported by many Republican lawmakers and some Democratic lawmakers who back crypto, but Democrats are concerned that the exemption for crypto could create loopholes for traditional financial institutions using blockchain.

Congresswoman Maxine Waters, a senior member of the Committee, is expected to send a letter requesting SEC Chairman Paul Atkins to provide a full analysis of the impact of the CLARITY Act, similar to how former Chairman Gary Gensler did with the FIT21 bill previously. Waters emphasized that the bill could significantly affect investor protection, market competition, and the role of the SEC. If passed, the CLARITY Act could boost blockchain projects like DeFi on BNB Chain, but it also poses risks if lacking strict regulation.

Impact on the crypto market

This controversy highlights the political tensions in shaping crypto regulation in the USA. If the CLARITY Act is passed, it could facilitate cryptocurrency projects, especially DeFi and Web3 applications, by lowering regulatory barriers. However, the lack of transparency from the SEC may undermine investor confidence in the legislative process.

The support of some lawmakers for crypto, along with projects like Trump's Truth Social Bitcoin ETF, suggests that the USA is moving towards integrating cryptocurrency into the financial system. However, investors need to be cautious of ongoing legal uncertainties.

Risk assessment: Price volatility and regulatory changes require investors to conduct thorough research before participating.

Risk warning: Investing in cryptocurrency carries high risks due to significant price volatility. #anhbacong