Giancarlo: Crypto Will Thrive Even Without Clarity Act

Former CFTC Chairman Chris Giancarlo downplayed the potential impact of delaying the CLARITY Act, saying that crypto innovation will continue regardless. He urged the industry to stop treating the bill as a 'do-or-die' proposition and emphasized that its benefits would not be lost even if it doesn't pass.

Giancarlo noted that the shift towards moving assets onto blockchain networks is inevitable, stating that 'it may change where it gets built and what gets built.' He also warned that both the GENIUS Act and the CLARITY Act expand Bank Secrecy Act obligations to new financial systems based on blockchain, which he sees as an issue for Fourth Amendment grounds.

Giancarlo's comments come as hopes fade for a pre-recess cloture vote in the Senate. Senator John Thune had said that he did not expect the bill to clear the chamber before the August recess deadline. Giancarlo attributed the delay partly to the ethics fight over President Donald Trump's crypto dealings, saying it 'may be a little bit of an excuse' for some Senate Democrats who are unable to back the bill under pressure from their party's left flank.