Can the Clarity Act stop crypto scams like pump and dumps?

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bengweiSenior Member
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#1Jun 11, 2022, 12:53 AM
I just came across some info about the Clarity Act of 2025, which is supposed to set new rules for the digital asset market. By 2026, I really hope this will be in action since it’s moving through the Senate right now. The main goal of this act is to tackle those pump and dump schemes head-on, get rid of stop-loss traps, and curb manipulation. It aims to provide clearer guidelines to fight against those low-effort scams we see on centralized exchanges. But I wonder, will these fake projects just shift over to decentralized exchanges where the act might not have much impact? * What do you guys think about this Clarity Act? How do you see it impacting the crypto and Bitcoin markets by 2026? * Do you really believe this act can help stop pump and dump schemes and stop-loss traps, and maybe even bring more stability to the crypto market?
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mark_whaleSenior Member
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#2Jun 11, 2022, 01:17 AM
Complete waste of time 1. Shitcoins are easy to create, and those pump and dump schemers will always move from one token to another. It will even be so hard for them to keep track of the said suspicious tokens I mean, if they can fail to bring down the so many Ponzi schemes out there, then what about the hundreds of tokens that can be created and rug pulled daily.
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ape_2018Senior Member
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#3Jun 13, 2022, 10:00 AM
There are many markets with many traditional markets which are older than Bitcoin and cryptocurrency market. You can find an answer by searching about market manipulation in traditional markets, does it exists and is any Act able to prevent market manipulations? No Act can prevent this completely, and this Clarity Act will be the same for Bitcoin and cryptocurrency market. It plays its roles on the market in the future, it is helpful somewhat but there are always existences of market manipulations, pumps and dumps, news, FUD attempts to cause chaos in the market. Bitcoin and cryptocurrency market began to be more matured with time, especially with Bitcoin Spot ETF approvals in January 2024 in the USA. The Clarity Act is another thing to make it more matured and comes nearly to traditional market, but don't expect it eliminate market manipulations.
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jake_gweiSenior Member
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#4Jun 13, 2022, 11:47 AM
Hundred of tokens daily being created is being too moderate on the number, in fact there are more likely more than thousands of shitcoin being created daily because every second there is like 5-10 meme coins being deployed and that is only from one platform. The rug of shit coins seem to be industrialized and ran by people who uses bots or any means to deploy as much shitcoins as they can and try to rug people as much as they can and yes I agree, I doubt those shitcoin rugs gonna vanish just because the regulation. Though if the Clarity Act is effective, then good. At least it can stop liquidity hunting and manipulation in exchanges.
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calmfalconSenior Member
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#5Jun 13, 2022, 01:40 PM
Is it USA or European Union to implement this Act? Initially, exchanges will find easy practices to bend the rule. For example, if this Act is in USA, almost all the exchanges got separate version for USA region and they would stop those manipulations for USA regions alone. When more countries would be copying this Act, we may start seeing some differences. Anyhow, everything starts from a dot, even this Act may not bring 100% protection to all traders, at least there would be some relief which will be definitely better than the times of no such Act.
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