Securities Exchange Act of 1934

Yeah.

Well, if you think about these agencies, if you look at Treasury, their financial crimes enforcement network, they help with bank secrecy act compliance they have a lot of authority already and they have been putting out guidance on how uh different participants in the crypto ecosystem uh should should think about the bank secrecy act they were the very first federal agency to do so back in 2013 um so there's there's already a lot of guidance and rules there if you look over um at the sec and the cftc that's the securities regular market regulator and uh the commodity futures and derivatives market regulator They also have the Securities and Exchange Act, the Investment Advisors Act, the Commodity Exchange Act.

There's pieces of legislation that give them authority today to regulate certain places.

The benefit of the Clarity Act would have been there would have been some new authorities that would have gone to those agencies.

I mean, a l- a lot of people compare, uh, the risks of AI technology because it's such a powerful technology with, um, something like atomic energy, right? And I, I think we can disagree about whether, whether that's right or not, but, but let's say for, for example, that it is, and it's, it's on sort of like that tier of risk, then, then I don't think simple, like, legal and civil liability is, is sufficient, and I think you need, you need some safeguards beyond that.

So I think it's, it's, it's a question of like, all right, this hugging face incident and things like that, is that the ceiling of the type of offensive cybersecurity li- uh, uh, capability that we have, or should we plan for something that's maybe 10 times bigger or, or 100 times bigger? And, and do we have time, you know? Is it, is it one of those things where maybe we'll see a canary in the coal mine and there will be, uh, something to react to and respond, and then we can kind of like nip it in the bud, or is the first issue gonna be, gonna be catastrophic? If you, if you think about all regulations in the financial industry, you can kind of trace them back to some kind of crisis, right? The market crash of 1929 led to, uh, you know, the, the Securities Act, uh, of, of the '30s and the Securities and Exchange Act and the establishment of all of that regulation.

And it's, it's, it's typically some problem, uh, raises, raises a concern.

And, and I think my mental model is this will probably be similar in a sense.

Today's SEC order grants two forms of temporary conditional exemptive relief.

First, exempting certain trading venues from the definition of exchange under Section 3[a][1] of the Exchange Act, and second, exempting certain liquidity providers from the definition of dealer under Section 3[a][5] of the Exchange Act.

We are not cementing today's technology as the standard for tomorrow.

This exemption is a principled, structured grant of relief designed to resolve genuine legal uncertainty that has driven innovation away from the United States while providing investor protections and upholding market integrity standards.