Zach Pandl, Head of Research at Grayscale, believes that while the crypto ecosystem will not be immediately impacted if the Digital Asset Market Clarity Act does not pass, it could affect new investment activity in the U.S. as industry actors shift toward friendlier jurisdictions.
Key Takeaways
Grayscale notes crypto will advance even if the CLARITY Act fails, as regulators will fill the gaps.A lack of comprehensive US market structure rules could drive new investments and startups overseas.Industry leaders agree Bitcoin will thrive regardless, but the US needs clarity to retain leadership.The crypto industry is already examining a future where the Digital Asset Market Clarity Act, which would provide a comprehensive crypto framework with consumer protection and clear guidelines, fails to become law.
Zach Pandl, Head of Research at Grayscale, which manages billions in crypto assets and provides crypto investment products, believes that even if the Senate fails to enact CLARITY, government agencies will step in to fill the current regulatory gaps through comprehensive rulemaking.
“CLARITY not passing won’t have an immediate impact on the functioning of major blockchains, the demand for Bitcoin as a store of value, or on the growth of stablecoin payments. The legislation would have provided a more comprehensive rulebook for digital assets in the US, but the industry has moved forward for almost 17 years without it,” he assessed.
“The lack of comprehensive market structure legislation could hold back new investment activity in the United States… The lack of fulsome market structure regulation in the US may drive entrepreneurial activity overseas on the margin,” Pandl explained.
“Crypto will move forward without CLARITY, supported by expected rulemaking by the SEC and other regulators. However, without comprehensive market structure rules, a greater share of new investment may occur overseas, in our view,” he concluded.
