TLDR
Coin Center says the stalled Digital Asset Market Clarity Act (CLARITY Act) leaves US crypto exposed to future political crackdowns rather than clear, durable rules.
- Coin Centers Peter Van Valkenburgh argues that without CLARITY, crypto remains at the mercy of prosecutorial discretion, political fashion, and fear.
- The delay keeps developers, DeFi, and stablecoin products exposed to shifting SEC and DOJ interpretations, with some warning most tokens could still be treated as securities.
- The fight now centers on Senate negotiations, especially stablecoin yields, and on whether a fragile industry coalition can get a bill to the floor before political windows close.
Deep Dive
1. What Coin Center Is Warning About
The Digital Asset Market Clarity Act (CLARITY Act) is a US market?structure bill intended to define how digital assets are classified, how intermediaries register, and how developers are treated.
Executive director Peter Van Valkenburgh warns that if CLARITY and related bills are not passed, crypto will remain governed by discretionary enforcement rather than law, leaving future administrations free to reverse guidance and pursue crackdowns based on politics and fear. He stresses that the goal is not to trust this administration, it is to bind the next one, arguing that failing to act now could create a grim future for crypto developers and infrastructure providers.
2. How Delay Raises Crackdown Risk
Without statutory protections, regulators can revert to using broad laws in aggressive ways. Analysts note that if CLARITY fails, the SEC could again push to treat most tokens as securities and even classify developers or infrastructure operators as brokers or exchanges when their software touches tokenized assets.
Van Valkenburgh specifically worries the Department of Justice could target privacy?tool or DeFi developers as unlicensed money transmitters, similar to past high?profile cases, while friendlier SEC guidance since 2025 remains fragile and reversible.
At the same time, there is internal debate: Senator Cynthia Lummis says the latest draft offers the strongest protections ever for DeFi developers, while critics like Jake Chervinsky and Charles Hoskinson argue some language might still misclassify non?custodial devs and over?securitize tokens, which could itself chill innovation.
For builders and serious users, the risk is that a change in political winds could quickly tighten enforcement around privacy tools, DeFi, and stablecoin products if Congress leaves the framework vague.
3. What To Watch Next
The bill is stuck in the Senate, with banks, crypto firms, and lawmakers split over whether stablecoins should be allowed to pay yield. The House passed its version in 2025, but Senate talks have repeatedly stalled.
Some analysts warn that if a compromise does not reach the Senate floor within the current session, chances of passage drop sharply, while a White House advisor has openly cautioned that blocking todays compromise may invite a harsher approach from a future administration, especially on stablecoin rewards and DeFi.
For market participants, the key signals are: whether a revised text emerges with clear developer protections, whether major industry players like exchanges rally behind it, and whether the Senate actually schedules a vote.
Conclusion
Coin Centers warning is less about immediate price moves and more about regime risk: without CLARITY, US crypto remains exposed to swings in political mood and enforcement style. The outcome of todays legislative fight will shape how safe it is to build privacy tools, DeFi, and stablecoin products in the US over the next cycle.
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