# Experts Criticize CLARITY Act's Impact on Crypto Industry Legal scholars argue the bill protects intermediaries rather than decentralized finance principles. - **Source:** [INCRYPTED](https://brifing.si/source/7cd4625d-3f08-4cc1-983d-4c7d991839ba) - **Published:** 2026-08-21 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/0b23b31b-113b-4640-8abc-0d3d265f9159 ## Core Criticism of CLARITY Act Hermine Wong from Berkeley Law contends that the Digital Asset Market CLARITY Act primarily safeguards centralized intermediaries rather than crypto technology itself. According to Wong, only 2-4% of the bill addresses foundational technology, while 44-77% focuses on exchanges, brokers, and custodians. This contradicts cryptocurrency's original vision of reducing reliance on financial intermediaries. The bill is scheduled for Senate vote in September 2026. ## The Bill's Primary Focus Wong argues that despite its name, CLARITY Act regulates crypto intermediaries' business models rather than advancing the underlying technology. While the crypto industry has faced years of regulatory uncertainty, this bill allegedly fails to address core issues. The legislation reportedly overlooks needs of P2P users, self-custody holders, and decentralized protocol developers, focusing instead on institutional players. ## Political Influence and Funding During the 2024 election cycle, the crypto industry contributed over $200 million in political donations, with more than 80% coming from major players like Coinbase, a16z, and Ripple. Wong suggests this financial influence prioritizes large corporations' interests in the legislative process. Smaller market participants and individual users reportedly lack adequate representation in these regulatory discussions. ## Industry Reactions Solana Policy Institute's Miller Whitehouse-Levin estimates only a 10% chance of the bill passing before November elections. Grayscale analysts consider passage this year highly unlikely. Bitwise and Bernstein analysts predict market growth will continue regardless, potentially accelerating alternative frameworks like Project Crypto. Critics argue the bill merely adapts traditional finance rules to crypto rather than fostering innovation. ## President Trump's Position President Donald Trump has urged Congress to support CLARITY Act, but experts contend it contradicts crypto's decentralized nature. Significant opposition exists within the crypto community, with critics calling it a traditional finance solution ill-suited for innovative technologies. The debate highlights tensions between regulatory oversight and technological progress in financial markets. ## Alternative Regulatory Approaches Wong advocates for regulatory frameworks prioritizing decentralized protocols, user security, and governance mechanisms over institutional rules. She emphasizes protecting self-custody users and P2P participants. Experts suggest the U.S. needs technology-friendly regulations to maintain global leadership in crypto innovation, rather than replicating existing financial oversight models. ## Industry's Future Trajectory Analysts agree the crypto market will continue growing regardless of CLARITY Act's fate, though regulatory uncertainty may slow innovation. Initiatives like Project Crypto aim to enhance industry self-regulation. Crypto firms are developing strategies to navigate varying state-level regulations while awaiting federal clarity. The sector's adaptability continues to impress observers despite legislative challenges. ## Global Implications U.S. crypto regulation efforts set important precedents for global markets. CLARITY Act's development could influence other nations' approaches, though alternatives like EU's MiCA framework demonstrate more technology-friendly models. Experts argue the U.S. should adopt more inclusive policies to help shape international standards, rather than forcing crypto into traditional regulatory boxes. ## Sources covering this story - https://incrypted.com/ekspertka-poyasnyla-hlavnuyu-problemu-clarity-act/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._