Bipartisan Group in House Introduces CLARITY Act Regulating Digital Assets

Plus a former SEC staffer writes "morale at the Commission is the worst I have ever seen—by far."

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Bruce Carton
June 02, 2025

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Matt Graves, former U.S. Attorney for the District of Columbia, has joined Winston & Strawn as a partner in the firm’s Washington, D.C. office.

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U.S. Lawmakers Unveil CLARITY Act Regulating Digital Assets

A bipartisan group of House members has introduced a draft bill regulating the broad cryptocurrency market.

As expected, the CLARITY Act of 2025 grants the Commodity Futures Trading Commission (CFTC) broad authority over most crypto assets, significantly reducing the Securities and Exchange Commission’s (SEC) role in overseeing digital assets.

The bill originated from the House Committee on Agriculture, which oversees the CFTC, underscoring the authority the agency will have.

“Market participants will have a trusted pathway to trade digital commodities through intermediaries and exchanges overseen by the CFTC,” a summary of the bill reads. There will be “comprehensive registration regimes to permit digital asset firms to lawfully serve customers in digital asset markets.”

That said, the SEC will have a role, overseeing digital asset developers as they raise funds, among other things. The bill seeks to “establish clear lines” of authority between the two agencies.

by The Defiant

👉 The draft legislation is here.

I was eager to see the extreme creativity behind a seven-letter acronym (“CLARITY”) about regulating digital assets but, alas… there is no such creativity (or acronym). CLARITY is just a short-hand name for the “Digital Asset Market Clarity Act of 2025.”

Elon Musk’s Smashup of the SEC Won’t Be Soon Forgotten

For nearly 31 years, I was what President Donald Trump would call a “corrupt, incompetent and unnecessary deep state bureaucrat.” The Securities and Exchange Commission was my professional home under leadership appointed by both parties. Before my retirement this year, I watched with alarm as the agency was being damaged by people who haven’t the vaguest clue what public service means.

My ex-colleagues still at the Commission can’t speak out in their own defense. But I can. Cuts to the SEC, spearheaded by Elon Musk before he departed from the U.S. DOGE Service this week, won’t save money. But they will put investors at greater risk and may slow the pace of financial innovation.

The SEC’s lawyers, accountants, economists, and experts oversee the nation’s $120 trillion securities markets. They deter fraud, ensure fair and efficient markets, and help businesses access capital. Virtually any of them could get higher-paying private-sector jobs. Instead they chose to devote themselves to the unglamorous work of serving the public. […]

I worked through Trump’s first term, but that still didn’t prepare me for how bad things would get under his second.

by Barron’s

👉 Article by Martin Kimel, former Senior SEC Special Counsel. Kimel states:

“I experienced some dark times during my SEC career, including the 2008-09 financial crisis and the Enron and Madoff scandals. But morale at the Commission is the worst I have ever seen—by far. No job is secure. Nobody knows what will become of the agency or its independence.”

(Click on the “X” if you get a pop-up on the Barron’s website asking you to subscribe).

The FTX scandal is about to get a Netflix limited series from the Obamas production company

The FTX scandal is set to get a limited series from a production company founded by former United States President Barack Obama and first lady Michelle Obama.

Netflix confirmed which stars will lead a forthcoming 8-episode limited series, “The Altruists,” about the FTX scandal. Julia Garner, from “Inventing Anna” and “Ozark,” will star as Caroline Ellison, while “House of Guinness” star Anthony Boyle will play Sam Bankman-Fried, the streaming giant wrote on X Thursday.

by The Block

👉 As someone who has read both “Number Go Up” and “Going Infinite” about FTX and Sam Bankman-Fried, I was already 100% in on watching a Netflix series on the FTX scandal. Adding Julia Garner from Ozark just makes it even better!

‘AI washing’: regulatory and private actions to stop overstating claims

The SEC recently reaffirmed that AI was one of its examination priorities for fiscal year 2025. In recent remarks an SEC attorney explained that the SEC is focused on “rooting out” the misuse of artificial intelligence by brokerage firms and publicly traded companies. Madiha Zuberi, an enforcement attorney working on the SEC’s newly constituted cybersecurity and emerging technologies unit, said that the agency is focused on both how public companies and startups discuss their use of the technology with customers and investors.

Zuberi was quoted in an article reporting on the Securities Docket Enforcement West conference, saying: “We’re looking at whether there’s transparency around the technology, whether it’s described accurately, whether there’s responsible communications to customers.” See, “SEC Focused On ‘Rooting Out’ AI Abuse, Agency Atty Says,” Law360, May 15, 2025.

by Reuters

The New Partner Payday Gold Standard: $20 Million

Twenty million dollars is a lot of money for a lawyer (or anyone, tbh) to make in a year. Yes, even for very talented Biglaw types. But that benchmark is becoming increasingly common due to the pressure coming from the very top of Biglaw.

Simpson Thacher recently made headlines for deciding to keep up with the Kirklands, Lathams, and Paul Weisses of Biglaw. That is, increasing the top of their pay scale to the $20M benchmark, because as Alden Millard, chair of the firm’s executive committee, said, they “intentionally made the decision to adjust our compensation structure to attract and retain the best talent across our global platform.”

by Above the Law

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