Coin Center: If the CLARITY Act does not pass, the U.S. government may strengthen cryptocurrency regulation again in the future.

Odaily Planet Daily reports that Coin Center Executive Director Peter Van Valkenburgh said that if the crypto market structure bill (the CLARITY bill) fails to pass, a U.S. government that is unfriendly to the industry may step up regulation of the crypto sector again in the future. If the legislation in the CLARITY bill and the Blockchain Regulatory Certainty Act regarding developer protections is rejected—and if short-term business interests and the current regulatory environment are prioritized—it could put the industry in an unfavorable position.

Peter Van Valkenburgh said the purpose of the CLARITY bill is to bind future governments by law, rather than rely on the current administration’s stance. Without relevant legal protections, the crypto industry could be affected by enforcement discretion, policy changes, and uncertainty. According to his disclosure, the CLARITY bill has been blocked in the Senate because banks, crypto businesses, and lawmakers were unable to reach agreement on key provisions, including whether stablecoin yield is allowed. The bill covers a crypto intermediary registration framework, digital asset regulation, and token classification, among other areas.

In addition, in the absence of legislative clarity, the Department of Justice could strengthen enforcement against developers of privacy tools in the future, viewing them as unregistered money transmission entities, while existing regulatory interpretive guidance could also be withdrawn. Previously, former U.S. Securities and Exchange Commission Chair Gary Gensler faced criticism from the industry for advancing policy through enforcement actions and settlement deals with crypto firms rather than through formal rulemaking. Since he stepped down on January 20, 2025, the SEC has withdrawn multiple long-running enforcement actions against crypto firms and issued more lenient regulatory guidance. (Cointelegraph)