CLARITY Bill Takes the Decentralization out of Crypto — Crypto Exec
The CLARITY Act, while clarifying regulatory jurisdiction, risks centralizing crypto control in the hands of large financial institutions, according to Gnosis co-founder Friederike Ernst.Summary
Dr. Friederike Ernst, co-founder of the Gnosis blockchain protocol, warns that the US Digital Asset Market Structure Clarity Act (CLARITY Act) could undermine the decentralized nature of cryptocurrency. She argues that the bill's regulations, by requiring activity to pass through centralized intermediaries, could consolidate control within established financial institutions. Ernst emphasizes that blockchain's strength lies in empowering users as network owners, a benefit that could be lost if users become mere renters of financial technology.
Despite acknowledging the CLARITY Act's positive aspects – clarifying jurisdiction between the SEC and CFTC, and protecting peer-to-peer transactions and self-custody – Ernst cautions that failing to protect open, permissionless blockchain rails and decentralized finance (DeFi) protocols could replicate the vulnerabilities of the traditional financial system. The bill is currently stalled in Congress due to disagreements over stablecoin yield and interest sharing.
Coinbase has withdrawn its support for the bill, citing concerns about provisions that could harm DeFi and the tokenized real-world asset sector. While Senator Bernie Moreno remains optimistic about its passage by April, analysts suggest the bill's chances diminish significantly after April 2026, with potential hurdles beyond stablecoin rewards including DeFi protections and regulatory authority.
(Source：Cointelegraph)