Paradigm’s Slaughter: CLARITY Act Dead, House Democrats Drafting Stricter Crypto Bill

The significance here is less the CLARITY Act's failure than the direction of travel it signals: a partisan drafting process that could reallocate oversight toward the SEC and tighten DeFi rules. That matters most for DeFi protocols and the venues that list their tokens, which have benefited from the assumption that market-structure legislation would eventually legitimize their model. The open question is whether this Democratic draft gains any traction or remains a messaging document, and whether the CFTC-SEC balance becomes a live negotiating point rather than a settled premise.