Coin Center Executive Director Peter Van Valkenburgh warned that prioritizing "short-term business interests" over passing the CLARITY Act could leave the crypto industry vulnerable to future enforcement actions from less friendly administrations.
The advocacy group's concern centers on developer protections in the Blockchain Regulatory Certainty Act, which would clarify that non-custodial software developers are not money transmitters.
Van Valkenburgh argued the legislation aims to "bind the next" administration through statutory protections, not rely on current regulatory goodwill. Without these safeguards, the industry faces "prosecutorial discretion, political fashion, and fear," he stated.
Stablecoin Yield Impasse Stalls Progress
The Digital Asset Market Clarity Act remains stuck in the Senate Banking Committee despite a March 20 compromise between Senators Thom Tillis and Angela Alsobrooks on stablecoin yield provisions.
The agreement bans passive yield from holding stablecoins while permitting activity-based rewards.
Industry representatives who reviewed the draft text March 23 described the language as "overly narrow." Coinbase publicly opposed the compromise. Jason Somensatto, Coin Center's policy director, described the stablecoin yield debate as the "main blocker" preventing advancement.
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Developer Protections Face Uncertain Path
Van Valkenburgh warned that without legislative clarity, a future Justice Department could intensify enforcement against privacy tool developers, treating them as unregistered money transmitters.
The concern echoes criticism of former SEC Chairman Gary Gensler, who left January 20, 2025, and faced industry accusations of advancing policy through enforcement actions rather than formal rulemaking.
The CLARITY Act must clear five sequential steps before reaching the president's desk: Senate Banking Committee markup (targeted for late April), full Senate floor vote requiring 60 votes, reconciliation with the Agriculture Committee version, reconciliation with the House-passed version, and presidential signature.
Senator Bernie Moreno stated the bill must advance by May or crypto legislation could face years of delay.
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