The Democratic Party accuses the SEC of bias in the CLARITY bill regarding crypto.

Democratic House aides said the SEC has refused to provide technical analysis (TA) on the CLARITY bill – a crucial bill that reshapes the oversight structure of the crypto market in America. Meanwhile, the SEC is reported to have quietly shared this analysis with the Republican side.

According to tradition, the SEC must provide TA to both parties to ensure an objective assessment of the impact of the bills. However, this time Democratic aides argue that the SEC has broken the principle of neutrality, labeling the documents as "privileged" and refusing to share.

The CLARITY bill will exclude the majority of digital assets from the definition of securities, meaning the elimination of the SEC's oversight role. This raises concerns among many lawmakers about legal loopholes if blockchain technology is abused.

Congresswoman Maxine Waters has sent a letter requesting the SEC to provide public TA for both parties. The lack of this transparency may cause some Democrats who support the crypto market to reconsider their support for the bill.