Senate Banking Committee Republicans have defended the CLARITY Act ahead of its May 14 markup, countering claims that the bill would weaken securities laws and create regulatory loopholes. They assert that the legislation will enhance regulatory authority, enforce disclosure requirements, and strengthen anti-fraud measures in digital asset markets. The bill aims to clarify the roles of the SEC and CFTC, while addressing concerns related to sanctions, money laundering, and decentralized finance (DeFi). In response to criticism, Republicans emphasized that digital asset securities would remain under SEC oversight, with entities facing new disclosure and compliance obligations. The bill also proposes bringing digital asset brokers and exchanges under Bank Secrecy Act requirements, including anti-money laundering and sanctions compliance. Additionally, the legislation includes consumer protection measures, such as educational materials on digital asset risks and fraud reporting procedures, developed through bipartisan negotiations. The proposal also addresses digital asset kiosks and DeFi protocols, setting registration and compliance standards, and offering protections for developers not controlling customer funds. Senate Republicans argue that the CLARITY Act provides clear regulatory guidelines, replacing uncertainty with structured oversight.