US Congress Delays Clarity Act as Critics Claim Prioritization of Intermediaries

The debate over the Digital Asset Market Clarity Act in the US Congress has heated up as lawmakers delay action on the bill until mid-September. The legislation aims to provide regulatory clarity for digital assets, but critics argue that it primarily benefits intermediaries like exchanges and brokers rather than the underlying technology itself.

Berkeley Law lecturer Hermine Wong claims that only 2%, 4% of the bill's language focuses on crypto technology, while 44%, 77% deals with regulating intermediaries. She also points out that during the 2024 election cycle, crypto groups raised over $200 million in political funding, with Coinbase, a16z, and Ripple contributing more than 80% of the total.

Wong's review suggests that the Clarity Act channels demand for regulatory clarity into a framework centered on exchanges, brokers, custodians, and other market intermediaries. This emphasis may be linked to the concentrated group of crypto businesses and wealthy individuals who provided most of the funding during the election cycle.

The legislative delay has also raised concerns that regulation continues to prioritize intermediaries over peer-to-peer financial infrastructure. Despite Republican control post-2024 election and President Trump's backing, no crypto market structure bill passed Congress, missing deadlines in July 4 and pre-August recess periods.