CLARITY Act delay could expose crypto to future crackdowns

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CLARITY Act delay could expose crypto to future crackdowns

Peter Van Valkenburgh believes the cryptocurrency industry risks missing a valuable opportunity to establish clear legal rules in the U.S.

Summary

  • Van Valkenburgh said CLARITY would protect developers from crackdowns driven by politics, discretion, and fear.
  • The Senate stalled the bill as banks and crypto firms clashed over stablecoin yields rules.
  • Without legislation, crypto firms could rely on guidance that another US administration may reverse later.

He made these remarks while a bill called the CLARITY Act was stalled in the Senate. Without the bill becoming law, the industry faces uncertainty because current policies could be changed by future Congresses.

According to Van Valkenburgh, Coin Center’s executive director, the CLARITY Act isn’t about trusting the current administration – it’s about ensuring future administrations follow specific rules. He explained that the bill is important because it would legally protect developers, instead of relying on policies that could be changed by a new administration after an election.

He cautioned that without these safeguards, things could get difficult for people building crypto technology. He believes a lack of clear laws would leave the industry vulnerable to unpredictable enforcement, changing political priorities, and general uncertainty, rather than operating under established legal guidelines.

Senate deadlock keeps the crypto bill in limbo

The CLARITY Act aims to establish clear federal regulations for digital assets, determining whether they should be considered securities or commodities. This is a key step in resolving the ongoing debate about which government agency should oversee the cryptocurrency market.

Progress on the bill has stopped in the Senate because banks, cryptocurrency companies, and politicians can’t reach a consensus on important details. A major point of disagreement is whether crypto companies should be permitted to offer rewards or interest-like returns on stablecoins.

A Senate proposal from January would prevent companies from paying interest simply for people holding stablecoins. However, it would still permit rewards for using stablecoins to make payments or through loyalty programs.

This problem is a major factor in the delay of the crypto market structure bill. Banks expressed concern that these products might draw money away from banks protected by federal insurance, but crypto companies countered that stricter rules would stifle competition.

Current policy may not survive a change in government

In July 2025, the House of Representatives approved its version of the CLARITY Act, but discussions in the Senate stalled. Some in the crypto industry worry that without a new law, companies might have to follow regulatory advice that could be changed by a future president.

Van Valkenburgh believes the risk stems from the period following Gary Gensler’s tenure as SEC chair, which ended on January 20, 2025. While the SEC has since shifted its approach – including forming a Crypto Task Force led by Commissioner Hester Peirce – Van Valkenburgh argues that simply being lenient isn’t enough to establish stable, long-term regulations for the crypto industry.

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2026-03-29 11:07