The CLARITY Act is the most important piece of financial market legislation Congress has considered in years. At its core, it does something remarkably simple: it establishes clear rules for an industry that has spent the better part of a decade operating in regulatory limbo. But Congress is on the verge of making a terrible mistake by squandering the opportunity to appropriately regulate this industry that has fought for clarity for so long.
Markets thrive on rules. Entrepreneurs build and Institutions invest when they know the rules. Consumers are better protected when everyone knows the rules. Right now, America has some of the world’s best innovators building the next generation of financial infrastructure onchain, yet for years they’ve been forced to navigate a regulatory framework defined more by lawsuits than legislation.
That isn’t good for anyone. It isn’t good for investors, and it isn’t good for innovation. It certainly isn’t good for American competitiveness. While we regulate and debate in circles, the rest of the world is moving forward without us.
Everyday Congress delays, it sends another signal that America is comfortable exporting the next generation of financial innovation along with the jobs and economic growth that come with it.
