Peter Van Valkenburgh has warned that the crypto industry may lose a rare chance to secure clear legal protections in the United States.
Summary
- Van Valkenburgh said CLARITY would protect developers from crackdowns driven by politics, discretion, and fear.
- The Senate stalled the bill as banks and crypto firms clashed over stablecoin yields rules.
- Without legislation, crypto firms could rely on guidance that another US administration may reverse later.
His comments came as the CLARITY Act remained stuck in the Senate, leaving the sector exposed to future policy changes if Congress does not turn current guidance into law.
Van Valkenburgh, the executive director of Coin Center, said on Friday that the aim of passing the CLARITY Act is not to trust the current administration, but to “bind the next one.” He argued that the bill matters because it would place developer protections into law rather than leave them dependent on policy choices that can change after an election.
He also warned that a world without those protections could become “grim” for crypto developers. In his view, the absence of legislation would leave the sector exposed to “prosecutorial discretion, political fashion, and fear” instead of clear statutory rules.
The CLARITY Act seeks to create federal rules for digital assets and define when tokens fall under securities or commodities law. The measure is part of a wider push to settle long-running questions over which agency should oversee large parts of the crypto market.
The bill has stalled in the Senate after banks, crypto firms, and lawmakers failed to agree on key terms. One of the main disputes has centered on whether crypto firms and intermediaries should be allowed to offer stablecoin rewards and yield-like products.
In January, the Senate draft would prohibit firms from paying interest to users solely for holding stablecoins. At the same time, the draft would still allow some rewards tied to activities such as payments or loyalty programs.
That issue has become one of the main reasons the crypto market structure bill has struggled to advance. Banks argued such products could pull deposits from the insured banking system, while crypto firms pushed back and said tighter limits would hurt competition.
Current policy may not survive a change in government
The House of Representatives passed its version of the CLARITY Act in July 2025, but Senate talks later lost momentum. Some industry participants fear that, without legislation, crypto firms may have to rely on regulatory guidance that a future administration could reverse.
Van Valkenburgh linked that risk to the years after Gary Gensler led the SEC, whose final day as chair was January 20, 2025. Since then, the SEC has taken a different approach, including a new Crypto Task Force under Commissioner Hester Peirce, but Van Valkenburgh said friendly discretion alone is not enough to secure lasting rules for the industry.
