The Main Issue with the CLARITY Act: An Expert’s Insight

In a significant discourse on crypto regulation, Hermina Wong, a distinguished lecturer at Berkeley Law, has articulated her concerns regarding the Digital Asset Market CLARITY Act. In her view, this legislative proposal is more about securing the interests of centralized crypto intermediaries than promoting the core technology of cryptocurrencies. As the U.S. Senate has postponed its vote on this bill until September 2026, Wong calls for a regulatory approach that considers decentralized protocol developers, self-custody asset holders, and participants in peer-to-peer transactions.

The Focus on Intermediaries

Wong argues that after years of failed legislative initiatives and regulatory pressures, any comprehensive crypto law might seem like progress. However, she insists that the CLARITY Act is not genuinely about advancing cryptocurrency technologies but rather supports business models of crypto intermediaries.
She notes that a mere 2-4% of the bill’s text discusses fundamental technology, while 44-77% pertains to exchanges, brokers, custodians, and other intermediaries. This emphasis contradicts cryptocurrencies’ original intent—to reduce reliance on trusted third parties in financial systems.

Rethinking Crypto Regulation

Wong also highlights the political clout of major crypto firms. During the 2024 election cycle, over $200 million was funneled into politics from the crypto sector—with more than 80% coming from Coinbase, a16z, and Ripple.
She argues for legislation that prioritizes decentralized protocols’ security and governance while protecting users—not just focusing on rules for large centralized entities. Those left out are developers building decentralized systems and individuals who independently manage their assets through peer-to-peer transactions.
Moreover, while Solana Policy Institute’s head Miller Whitehouse-Levine estimated only a 10% chance of passing before November elections—and Grayscale deemed its chances this year low—analysts believe its failure could still foster expedited rule development under Project Crypto.
Meanwhile, President Donald Trump urged Congress to support this initiative. Despite various opinions in the market about its potential impact or lack thereof if passed or not passed soon enough; understanding these dynamics can provide valuable insights into how future regulations may shape up around cryptocurrencies globally without promoting any specific agenda preferentially over others involved within these ever-evolving landscapes emerging today worldwide across borders alike seamlessly always ongoingly adapting themselves accordingly too continuously forevermore!