NEWS: Senator Lisa Blunt Rochester Opposes Market Structure Legislation in Senate Banking Committee

Click here to watch Senator Blunt Rochester’s Remarks Senator Lisa Blunt Rochester (D-Del.), member of the Senate Banking, Housing, and Urban Affairs Committee, today released a statement outlining her opposition to the CLARITY Act, legislation to regulate the digital asset market. “Digital assets and blockchain technology present real questions and real opportunities, and legislation of this magnitude must be done right. I appreciate the substantial work many of my colleagues put into improving this legislation through good-faith bipartisan negotiations. While several provisions improved during negotiations, I do not believe the bill adequately addresses several serious outstanding concerns related to consumer and investor protection, market integrity, illicit finance, conflicts of interest, and the broader stability of our financial system. “We cannot separate this debate from the broader environment in which it is occurring. This administration and the people connected to it continue to engage with the crypto industry in ways that raise serious questions about corruption, self-dealing, and whether the rules are being written to benefit industry insiders rather than protect consumers and the public. This administration has a track record of unethical policymaking, and the provisions in this bill to crack down on insider trading and self-dealing fall incredibly short. “Law enforcement groups at every level from across the country have also voiced their concern about their ability to identify bad actors and protect communities from harm if this legislation progresses. Law enforcement relies on existing authorities and regulatory frameworks to trace questionable transactions and recover illicit proceeds, creating gaps in oversight and accountability that sophisticated criminal actors may exploit. “I remain concerned that parts of the bill could weaken existing investor protections and leave consumers and investors with fewer protections and remedies than they have under current law. This could have an outsized impact on my constituents, as Delaware has more crypto kiosks per capita than any other state. While our Attorney General, the Delaware Department of Justice’s Investor Protection Unit, and national groups like AARP have been sounding the alarm on the potential for cryptocurrency scams for years. Any federal legislation to regulate the digital asset market must adequately protect consumers from fraudulent use of cryptocurrency. Congress should not advance legislation of this scale and consequence without greater confidence that it will strengthen, rather than weaken, trust in our financial system. The consequences of getting this wrong could extend far beyond the digital asset industry itself. Congress has a responsibility to ensure that innovation does not come at the expense of financial stability, public trust, or the protections Americans rely on in their financial markets. For those reasons, I voted no.”