Analyst Suggests CLARITY Act Could Reduce Crypto Manipulation by 90% Amid Growing Bipartisan Support

CLARITY Act Overview: The CLARITY Act aims to enhance crypto market integrity by banning wash trading and front-running, while expanding the CFTC's powers for real-time market surveillance and regulatory audits for U.S.-facing exchanges.

Impact on Market Manipulation: Market analyst MartyParty suggests that the act could reduce crypto manipulation by up to 90%, targeting practices like spoofing and layering, and making front-running a felony.

Regulatory Framework: The act establishes a clear regulatory framework distinguishing between commodities and securities, aiming to prevent regulatory overlap and ensure consistent enforcement against market manipulation.

Legislative Progress: Despite a government shutdown, bipartisan efforts continue to advance the CLARITY Act, with a committee vote anticipated before Thanksgiving, building on previous legislation like the GENIUS Act.