McHenry says CLARITY Act could become finance’s next Telecommunications Act

Former U.S. Rep. Patrick McHenry, a Republican, said the CLARITY Act, a virtual asset market structure bill, could carry historical significance comparable to the Telecommunications Act of 1996, according to an opinion piece published by U.S. venture capital firm a16z. McHenry said the United States is at a crossroads over whether it will retain its position as a global technology and financial hub or cede leadership to rival countries. He said the CLARITY Act aims to establish a framework that supports innovation in new technologies alongside consumer protection and has bipartisan backing. He argued U.S. financial regulation after the 2008 financial crisis focused on responding to past crises while showing less urgency in building systems for future technological innovation. In that context, McHenry said the CLARITY Act could become the first major financial reform in about 30 years aimed at building the financial system of the future. McHenry added the industry is not rejecting regulation but wants clear rules. If passed, the bill would provide regulatory clarity for the digital asset industry while strengthening investor protection and the ability to combat crime, he said. He also said the CLARITY Act is needed to help preserve U.S. technological competitiveness, as capital and innovation move to countries with clear regulations.