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House Democrats held a hearing to scrutinize the CLARITY Act, a crypto market structure bill, warning of regulatory gaps that could let traditional finance firms evade oversight. Experts highlighted risks to securities markets and potential exploitation of loopholes.
- The CLARITY Act could allow traditional finance firms to bypass SEC oversight by leveraging blockchain loopholes.
- Critics argue the bill's two-tiered system for crypto assets discourages issuers from opting into stricter SEC registration.
- Democrats warn that excluding DeFi from regulation leaves a significant portion of the crypto market unchecked.
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