U.S. lawmaker Patrick McHenry said the CLARITY Act now moving through Congress could carry historical weight similar to the 1996 Telecoms Act and help lay the groundwork for the next phase of financial innovation in the United States.
In an article published by a16z crypto, titled "The time for Clarity is here: The next-generation Telecoms Act," McHenry wrote that the United States is at a crossroads. He said the country can either maintain its position as a global center for technology and finance or give up that advantage to competitors challenging its lead.
McHenry compares the bill to the 1996 Telecoms Act
McHenry said the CLARITY Act is one of the few forward-looking opportunities for financial legislation in recent years. He compared it to the 1996 Telecoms Act, saying the goal is to embrace emerging technologies while also putting consumer protections in place.
He added that the bill has broad bipartisan support and is being advanced through coordination involving multiple congressional committees.
He says U.S. financial regulation has stayed in crisis-response mode
Drawing on more than 20 years in Congress, McHenry said timely legislation can move the country forward, while legislative paralysis can leave the U.S. trying to catch up in key technology fields.
He argued that U.S. financial regulation has remained in a "crisis-response mode" for too long. Since the 2008 financial crisis, he wrote, most major financial reforms have been aimed at past risks rather than building an institutional framework for future technological innovation. In his view, crypto market structure legislation offers a chance to break that pattern and become the first major proactive reform in nearly 30 years aimed at building the future financial system.
Clear rules, not an attempt to avoid regulation
McHenry also challenged the view that existing securities laws are already enough to cover the crypto industry. He said that position does not match market realities. According to him, companies and founders are not refusing regulation. They want clear rules.
"When entrepreneurs know where the boundaries are, they can innovate with greater confidence," he wrote.
McHenry said that if passed, the CLARITY Act would give the digital asset sector regulatory certainty, protect consumers and investors, and equip enforcement agencies with tools to go after crime and bad actors.
Bipartisan support extends to other crypto bills
He also pointed to bipartisan backing for several crypto-related measures, including the stablecoin bill known as the GENIUS Act. McHenry said more lawmakers now recognize that digital assets are not going away and that the U.S. needs clear rules to preserve its competitive edge.
He wrote that other countries are actively building digital asset regulatory systems and that capital and innovation will move to markets with clearer rules. In his view, the CLARITY Act is not only about crypto assets, but also about whether the United States can continue to lead 21st-century economic development and set the rules for global technological innovation.