US Risks Losing Crypto Leadership with CLARITY Act's Uncertain Fate

The US risks losing its grip on the crypto industry if the Digital Asset Market Clarity Act (CLARITY) fails to become law, warns Grayscale.

Zach Pandl, Head of Research at Grayscale, believes that while the act's failure won't have an immediate impact on major blockchains or Bitcoin's growth as a store of value, it will affect new investment activity in the US.

'The lack of comprehensive market structure legislation could hold back new investment activity in the United States,' Pandl said. 'A greater share of new investment may occur overseas.'

The industry has moved forward for almost 17 years without a clear framework, but Pandl calls CLARITY's hypothetical failure a 'missed opportunity.' He expects government agencies to fill regulatory gaps through comprehensive rulemaking.