House Democrats Claim SEC Is Withholding Key Details on Crypto Legislation
House Democrats are frustrated with the SEC for not providing critical information regarding a significant crypto bill aimed at regulating digital assets.
House Democrats Claim SEC Is Withholding Key Details on Crypto Legislation
The crypto sector may finally receive much-needed regulations, yet House Democrats are raising concerns that the SEC is ghosting them regarding vital information on a critical pending legislation.
What Is This Crypto Bill About?
This proposed legislation, titled the Digital Asset Market Structure Bill, also known as the CLARITY Act, aims to clarify regulatory oversight. Currently, the regulatory landscape for cryptocurrencies is confusing, with different agencies claiming authority over various assets.
Aiming to streamline this, the bill would allocate responsibilities between the SEC and the Commodity Futures Trading Commission (CFTC).
U.S. Democrats claim SEC shared crypto bill analysis with Republicans but not with them
Democratic staff in the U.S. House allege that the SEC provided Republicans, but not them, a standard technical analysis of the newly introduced crypto bill.
— CoinNess Global (@CoinnessGL) June 4, 2025
Under the proposed framework, the SEC would regulate centralized cryptocurrencies, while decentralized assets—like Bitcoin and Ethereum—would fall under CFTC oversight.
Why Are Democrats Upset?
The frustration stems from the SEC’s perceived lack of transparency. According to Democratic staffers from the House Financial Services Committee, Republicans received a detailed overview from the SEC regarding the bill’s potential market impact, while Democrats received nothing in response to their requests for similar analysis.
SEC Says Everyone’s Welcome to Ask
The SEC has responded, insisting that every lawmaker can seek assistance. A spokesperson emphasized their readiness to provide technical assistance. However, they haven’t confirmed whether Democrats will receive the same comprehensive report that Republicans did.
What Happens Next?
The bill is set to undergo markup discussions on June 12, where lawmakers will debate its specifics. It has garnered support from Republicans and some Democrats who are friendly to crypto initiatives. However, this lack of information exchange may complicate proceedings.
Bottom Line
This situation transcends partisanship; it’s about ensuring that legislators understand the impact of the regulations they are formulating. If one faction of Congress possesses information that the other lacks, it creates an uneven playing field. Given the potential effects of this legislation on U.S. cryptocurrency regulation, ensuring equitable access to information is crucial.
