Coin Center: If the Claritism Act stalls, the US may suppress the crypto industry without clear rules in the future.

PANews reported on March 29 that, according to Cointelegraph, Coin Center Executive Director Peter Van Valkenburgh warned that if the Crypto Markets Structure Act (CLARITY) fails to pass, a future US government that is unfriendly to the industry may suppress the crypto sector without clear rules. He stated that the significance of legislation lies in constraining the next administration, and the lack of legal protection will expose the industry to the risks of prosecutorial discretion and political dictates.

The CLARITY bill has stalled in the Senate as banks, crypto companies, and lawmakers failed to reach an agreement on key terms such as stablecoin yields. Van Valkenburgh points out that if the current legislative window is missed, the Department of Justice may increase prosecutions against privacy tool developers, and existing regulatory guidelines may be withdrawn.