The U.S. digital asset bill "CLARITY Act" hearing has begun, and Trump's encryption layout has sparked a heated debate between the two parties.

The U.S. Congress held a CLARITY Act hearing on the Digital Asset Market Clarity Act on 6/5 this morning to clarify the division of authority and responsibilities between the SEC (SEC) and the Commodity Futures Trading Commission (CFTC) in the supervision of crypto assets and platform operators. However, the scene was out of focus due to US President Trump's (Donald Trump) layout of the crypto market, causing controversy in the venue. A number of Democratic lawmakers criticized Trump's suspected conflict of interest, which delayed the progress of the bill's deliberations.

Key Summary

The hearing on the "CLARITY Act" mainly clarifies the jurisdiction of the SEC and CFTC, but it has lost focus due to Trump's layout in the crypto market.

Multiple Democratic members questioned whether Trump might profit from currency, demanding that the bill include "conflict of interest clauses"; otherwise, they would not support it, causing delays in the deliberation process.

What is the CLARITY Act?

The "CLARITY Act" proposed by Republican House Financial Services Committee Chairman French Hill focuses on:

Clearly delineate the regulatory responsibilities of the SEC ( and the CFTC ) regarding different types of encryption assets.

Request that encryption businesses must fully disclose to users, including how funds are used and whether there are segregated accounts.

The platform is prohibited from using user funds to avoid a financial black hole like that of the FTX exchange.

The hearing lost focus due to Trump, with encryption conflicts of interest sparking fierce debates between the two parties.

New York State Democratic Congressman Gregory Meeks stated at the meeting that Trump's layout in the crypto market has severely affected the legitimacy of legislation:

"We were supposed to focus on handling the bill, but now we are forced to discuss Trump's encryption actions, which is completely off-topic."

The following are events related to Trump's layout in the crypto market:

Launch of the personally endorsed encryption project World Liberty Financial

Issue Trump Coin TRUMP and Melania Coin MELANIA

Invite large holders of Trump Coin TRUMP to a private dinner, further infuriating Democratic Party legislators.

Connecticut Democratic Congressman Jim Himes stated:

"I would have originally supported this bill, but if a 'conflict of interest clause' is not added, I not only oppose it, but I will also encourage other Democrats to oppose it together."

( TRUMP holders have exclusive dinner opportunity! The first 220 will be invited to dinner with Trump )

The Republican Party strikes back at the Democratic Party, only wanting to smear Trump.

Kentucky Republican Congressman Andy Barr responded:

"You Democrats are simply playing politics, accusing Trump of benefiting himself from the bill, with absolutely no evidence."

He emphasized that Trump's support for encryption regulation is to help the industry, not to profit from it.

But Himes immediately retaliated, criticizing this statement as "cheap and irresponsible," and emphasized that Trump's overall "behavior" cast a shadow over the entire bill.

The hearing will be held again, with the Senate participating next Monday.

Democratic Financial Services Committee member Maxine Waters called for another Minority Day Hearing (Minority Day Hearing), and to expand the list of witnesses to reassess the connection between Trump and the bill. She also revealed that the committee may formally review the bill as early as next week.

In the Senate, Republican Senator Cynthia Lummis revealed during an interview on June 4 that the Senate will officially participate in discussions on the market structure bill starting next week, echoing the version from the House of Representatives.

(Cynthia Lummis: Senior U.S. military officials support Bitcoin reserves, Trump's media fundraising to buy BTC is visionary)

This article discusses the hearing on the U.S. digital asset legislation "CLARITY Act", where Trump's crypto strategy has sparked a heated debate between the two parties. It first appeared on Chain News ABMedia.