Patrick McHenry compared the Clarity Act to the Telecommunications Act of 1996 for its forward-looking approach. He said the bill would establish clear digital asset rules while strengthening
According to a16z Crypto, former House Financial Services Committee Chair Patrick McHenry urged Congress to pass the Clarity Act as lawmakers continue advancing crypto market structure legislation in the United States. McHenry compared the proposal to the Telecommunications Act of 1996 and said Congress now has an opportunity to establish rules for digital assets before future challenges emerge.
According to McHenry, the Clarity Act represents the largest forward-looking financial policy effort in decades. He said the proposal resembles the Telecommunications Act of 1996 because lawmakers developed both measures through bipartisan cooperation across multiple congressional committees.
He also contrasted the bill with legislation passed after the 2008 financial crisis. Notably, he said previous reforms mainly addressed past financial problems instead of preparing markets for new technologies.
McHenry added that Congress now has an opportunity to pass comprehensive financial legislation without responding to a crisis. He said that approach differs from measures enacted after major economic disruptions.
McHenry rejected claims that existing securities laws already provide enough guidance for digital assets. He also disputed arguments suggesting the crypto industry prefers operating without regulation.
Instead, he said businesses have consistently requested clear operating rules. According to McHenry, entrepreneurs build with greater confidence when legal boundaries remain well defined.
He also pointed to the internet's growth after regulatory frameworks established protections for users and investors. However, he said decentralized technologies first require a clear legal framework before broader development can continue.
McHenry said the Clarity Act would establish consumer and investor protections while giving law enforcement agencies tools to pursue criminal activity. He also said the legislation would reduce uncertainty surrounding business development.
Meanwhile, he highlighted recent congressional action on digital assets. According to McHenry, the GENIUS Act regulating stablecoins passed both chambers with bipartisan support, while several crypto market structure bills also attracted lawmakers from both parties.
He added that members of Congress recognize digital assets will remain part of financial markets. Finally, McHenry said countries continue advancing their own regulatory frameworks as Congress considers the Clarity Act.
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