Press Releases

Washington, D.C. – Yesterday, Rep. Ralph Norman (R-SC) spoke during the House Financial Services Committee markup, highlighting the successful inclusion of his provision in the CLARITY Act under consideration. The provision, which strengthens oversight within the bill, reflects Congressman Norman’s continued commitment to conservative values and responsible governance.

"The fact of the matter is that Chinese companies are generally required by Chinese law to share data with the Chinese government. As a result, these companies present a substantial risk to individual privacy and national security in the United States, especially since they are not required to share any information in return," said Rep. Norman on Tuesday. "I look forward to supporting the CLARITY Act, and I’m grateful for the inclusion of this provision, which promotes transparency about how our nation’s strategic enemies may be exploiting the digital asset marketplace to invade Americans’ privacy and steal valuable intellectual property."

Background

The CLARITY Act provides essential regulatory certainty for the digital assets industry while addressing critical national security concerns. A key provision, Section 313 of the bill (Section 314 of the ANS), directs the Treasury Secretary, in coordination with the SEC and CFTC, to study and report to Congress any digital commodity registrants owned by foreign adversary governments. The GAO is also required to conduct a parallel report.

This provision responds to growing concerns about foreign influence in U.S. digital markets. In a 2023 House hearing, Prometheum CEO Aaron Kaplan disclosed that his firm, a special purpose broker-dealer, entered into a joint venture with a Chinese company that holds a 20% stake. That partner was founded by a senior Chinese Communist Party official and remains closely tied to the CCP.

Given China’s data-sharing laws, such partnerships pose serious privacy and national security risks. By enhancing transparency around foreign involvement, the CLARITY Act helps protect Americans’ data and safeguard critical financial infrastructure.

For more information on Congressman Norman’s work in the Financial Services Committee, visit norman.house.gov.