**[Brookings Scholar Warns of Risks in CLARITY Act: U.S. CFTC May Face Regulatory Ineffectiveness]** Odaily Planet Daily News – Aaron Klein, a scholar at the Brookings Institution, has warned that as Congress reviews digital asset legislation, the U.S. Commodity Futures Trading Commission (CFTC) may face challenges of insufficient regulatory capacity when expanding its authority over digital assets. Klein pointed out that the CFTC was originally established to regulate the commodity futures market and was not designed for the scale of responsibilities proposed under the current crypto regulations. A lack of additional personnel, funding, and expertise could lead to a situation of "having regulatory authority but lacking substantive oversight." Recent staff turnover and institutional adjustments at the CFTC have weakened its regulatory capabilities, and expanding its responsibilities could repeat the regulatory failures seen during past financial crises. If crypto regulatory duties are dispersed across multiple agencies, it could result in delays and confusion, echoing the enforcement shortcomings of the Dodd-Frank era. Klein criticized allegations that financial regulation is influenced by politics, emphasizing that enforcement should remain independent of the White House or political figures. He called for enhanced accountability and measures to prevent financial misconduct. Klein suggested that the SEC and CFTC should strengthen coordination and even consider merging to improve the efficiency of regulating digital assets and prediction markets. In the short term, sharing office space could enhance collaboration, which would be more effective than formal agreements. (CoinDesk)