According to BlockBeats, on May 15, Senator Cynthia Lummis introduced an amendment to the CLARITY Act Banking Committee, requiring that existing securities laws prohibiting insider trading be applied to crypto assets, particularly "ancillary assets."
BlockBeats Note: "Ancillary assets" refer to a class of crypto assets that are related to securities but are not fully considered securities, as defined in the Act.
Senator Warren opposed the amendment, arguing that it only addresses the surface issue but creates a larger loophole—a large number of assets with securities characteristics are simply not classified as "auxiliary assets" and therefore completely exempt from insider trading rules. While I support combating all forms of insider trading, this patch is far from sufficient and gives the public a false sense of security, making them believe they are immune to insider trading in the crypto space—in reality, they are not. Insiders will still exploit loopholes. Therefore, I urge my colleagues to vote against it.
The amendment passed with 18 votes in favor and 6 against. The Cryptocurrency Market Structure Act (CLARITY Act) is currently undergoing clause-by-clause debate and voting on the amendment.
