Paradigm’s Justin Slaughter Calls CLARITY Act Dead, Outlines House Democrats’ Crypto Bill

Paradigm policy chief Justin Slaughter declared the CLARITY Act dead and flagged a forthcoming House Democrats’ crypto bill that could tighten DeFi rules and shift oversight of more of the industry from the CFTC to the SEC. The draft, being prepared by House Financial Services staff, would expand the SEC’s remit at the CFTC’s expense, a change Slaughter said DeFi participants “need to be watching this very closely.” The shift matters because it would redraw the regulatory boundary between the two agencies that has shaped how crypto firms structure products and register in the U.S. Watch for the bill’s release and its DeFi provisions, which could impose stricter compliance obligations on decentralized protocols.