The Wall Street Journal Editorial Board has criticized the Senate’s proposed Clarity Act. While acknowledging that the legislation would provide long-awaited regulatory certainty for the cryptocurrency industry, the board warned that it contains provisions that could introduce new risks to the U.S. financial system. Main concerns include a loophole allowing crypto exchanges to offer rewards to stablecoin holders despite the GENIUS Act’s prohibition, as well as exemptions from anti-money laundering and know-your-customer requirements for certain decentralized networks. Crypto advocates strongly rejected these criticisms, calling them inaccurate. Senate Republicans are pushing to pass the Clarity Act before the August recess.
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