Opinion: If the CLARITY Act is not passed, the U.S. government may strengthen cryptocurrency regulation in the future

Peter Van Valkenburgh, Executive Director of Coin Center, stated that if the cryptocurrency market structure bill CLARITY fails to pass, a future unfriendly U.S. government may once again strengthen regulations on the cryptocurrency industry. If the legislation related to developer protection in the CLARITY Act and the Blockchain Regulatory Certainty Act is rejected in favor of short-term business interests and the current regulatory environment, the industry may face adverse situations.

Peter Van Valkenburgh indicated that the purpose of passing the CLARITY Act is to legally bind future governments rather than relying on the current government's attitude; without relevant legal protections, the cryptocurrency industry may be affected by enforcement discretion, policy changes, and uncertainty. According to his disclosure, the CLARITY Act has been stalled in the Senate due to banks, cryptocurrency companies, and legislators failing to reach consensus on key terms, including whether to allow stablecoin yields. The bill covers a registration framework for cryptocurrency intermediaries, digital asset regulation, and token classification, among other topics.

Furthermore, in the absence of legislative clarity, future government departments may strengthen enforcement against developers of privacy tools, viewing them as unregistered money transmission entities, while existing regulatory interpretive guidance may also be revoked. Previously, former SEC Chairman Gary Gensler faced criticism from the industry for promoting policy through enforcement actions and settlements with cryptocurrency companies rather than through formal rulemaking. Since he stepped down on January 20, 2025, the SEC has withdrawn several long-standing enforcement cases against cryptocurrency companies and issued more lenient regulatory guidance.

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