To ensure permanent economic innovation, we must pass the Clarity Act now

One of my key priorities in Congress has been building an economy that works for all Americans. With a quarter of the city of Detroit, the population center of my district, either unbanked or underbanked, it is clear that the current financial system does not work for many of my constituents. To address these long-standing problems, we should support increased competition and innovative solutions in the financial sector, like blockchain technology.

Blockchain technology is best known for powering cryptocurrencies such as Bitcoin and Ethereum, but it has a diverse set of uses that can help every person in Metro Detroit and across our country thrive. Most importantly, these innovations can allow more Americans to access the financial system, working to bridge that economic divide once and for all.

While digital assets hold a great deal of promise, the current state of the digital asset sector is plagued by uncertainty and a lack of clear, consistent and easy-to-understand regulations. This makes it difficult for entrepreneurs to create innovative products in the United States. Despite these current challenges, digital assets have continued to grow rapidly, with the United States digital asset market growing at an exponential pace. However, with 90% of all cryptocurrency trading volume occurring offshore, it’s clear that the United States’s lack of a consistent regulatory framework is harming our digital asset industry, and we must do much more in order to encourage innovators and entrepreneurs in this rapidly growing sector to set up in the United States.

We have a prime opportunity to correct these challenges and create a transparent, pro-innovation and pro-consumer digital asset regulatory framework next week, when the Senate will have a key opportunity to advance the Clarity Act. This legislation will advance to debate and the amendment process if at least 60 senators vote for the legislation, and it could not come at a more urgent time. This legislation passed the House 294-134 more than a year ago, and with the Commodity Futures Trading Commission losing a quarter of its staff since President Donald Trump took office, a congressionally approved regulatory framework that takes the burden off CFTC rulemakers is incredibly important.