CLARITY Act Sparks Debate Over Impact on Crypto Innovation

The US Digital Asset Market Clarity Act (CLARITY Act) is designed to create a federal framework for digital assets. According to NS3.AI, the legislation has sparked debate due to concerns it may classify new projects as securities, potentially stifling innovation. Charles Hoskinson, founder of Cardano, cautions that the bill could drive crypto startups overseas by enforcing stringent regulatory requirements. Meanwhile, JPMorgan perceives the act as a potential driver for institutional growth in the sector. Disputes related to stablecoins, especially concerning reward programs, have hindered the bill's progress, highlighting ongoing tensions between banks and crypto companies over market structure and financial stability.