A stalled crypto market structure bill could expose the industry to future regulatory crackdowns, according to advocacy group Coin Center. Peter Van Valkenburgh, the group’s executive director, argued that rejecting legislative protections for developers now risks leaving the industry vulnerable to the political whims of a less friendly future administration. The current momentum for the CLARITY Act has stalled in the Senate due to disagreements on key provisions like stablecoin yields.
Failing to pass the crypto market structure bill, known as the CLARITY Act, could leave the door open for a future less industry-friendly US government to crack down on crypto again. Peter Van Valkenburgh the executive director of advocacy group Coin Center argued that rejecting developer protections in legislation like the CLARITY Act and the Blockchain Regulatory Certainty Act in favor of “short-term business interests” could lead to a grim future for the industry.
“The point of passing CLARITY is not to trust this administration. It is to bind the next one,” he said. He added that “A world without CLARITY’s statutory protections for developers is a world governed by prosecutorial discretion, political fashion, and fear.”
The CLARITY Act stalled in the Senate after banks, crypto firms, and lawmakers failed to agree on key provisions — including whether to allow stablecoin yields. The bill covers a range of measures, including frameworks for registering crypto intermediaries.
During the previous US administration, former SEC Chair Gary Gensler drew heavy criticism from the crypto industry for allegedly crafting policy through enforcement actions. Since Gensler resigned on Jan. 20, 2025, crypto proponents have seen a regulatory shift by the SEC.
Van Valkenburgh also predicts that, without legislative clarification, a future administration’s Department of Justice could ramp up prosecutions of privacy-tool developers. He said “If we lose this moment because we thought we’d have a bit more revenue and a bit more latitude under the short-term friendly discretion of the current administration, then we lose our way.”
He further stated “We fail to stand up for the kind of transparency, neutrality, and openness that crypto stands for. And worse, we will have helped tie the noose ourselves, handing it to the future officials who will be only too happy to pull it tight.”
