Digital Asset Market Clarity Act of 2025

Floor Speech

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Mr. FOSTER. Mr. Speaker, I rise in opposition to the CLARITY Act, which claims to bring digital assets under a regulatory umbrella but fails in two major areas.

First, it fails because it has no KYC--know your customer-- requirements for self-hosted wallets. It allows anonymous trading on DeFi exchanges and the dark web, which means there is no way to prevent wash trading, front running, corruption, ransomware, extortion and kidnapping payoffs, and all the parade of horribles that unregulated crypto has unleashed upon the world.

This legislation simply applies a patina of regulation while codifying loopholes that leave large parts of the industry, including the President's own meme coin schemes, completely unregulated.

Secondly, the CLARITY Act also lacks the basic investor protections present in the securities laws. For example, firms are not required to serve the best interests of their investors or to separate critical market functions and many other basic protections.

Now, I am not ideologically opposed to crypto, and both of these flaws are fixable, but in CLARITY they have not been fixed.

Mr. Speaker, I oppose this bill, and I urge my colleagues to vote ``no.''

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