A White House Tweet Exposed the Real Risk in the CLARITY Act

While the CLARITY Act debate focuses on stablecoin yield conflicts between banks and crypto firms, a more significant risk involves privacy. By formally recognizing regulated crypto roles, the bill implicitly subjects them to Bank Secrecy Act (BSA) compliance, even without explicit mandates for on-chain activity. This ambiguity allows intermediaries like centralized exchanges to default to expansive surveillance and data collection to minimize regulatory risk, effectively setting de facto standards.

This surveillance-first model disproportionately harms privacy-focused assets, as exchanges already avoid listing privacy coins like Monero as a precautionary measure. The CLARITY Act's failure to define how the BSA applies to blockchain systems risks cementing the most conservative, surveillance-heavy interpretation as the industry standard, potentially restricting privacy-oriented tools without open congressional debate on the trade-offs.

(Source：BeInCrypto)