Gnosis blockchain protocol’s co-founder Dr. Friederike Ernst stated that the CLARITY Act, known as the US Digital Asset Market Structure Clarity Act, could lead to large financial institutions taking control over crypto.
Dr. Friederike Ernst Explains the Centralization Risks of the CLARITY Act
The regulations in the law carry the risk of concentrating the crypto infrastructure in the hands of a few players by mandating that activities pass through centralized intermediaries. Ernst emphasized that the true innovation of blockchain is users owning the network, and stated that the law could relegate users to tenant status. Nevertheless, the law clarifies the division of authority between the SEC and CFTC, protecting peer-to-peer transactions and self-custody. This warning directly impacts the future of DeFi-focused projects like Gnosis in the context of GNO detailed analysis.
The preface of the CLARITY crypto market structure bill. Source: United States Congress
CLARITY Act Stalled Due to Stablecoin Yield Dispute
The CLARITY Act is stalled in Congress due to disagreements over stablecoin yields and issuers sharing interest with holders. Coinbase withdrew its support because the bill weakens DeFi, bans stablecoin yields, and hinders the growth of tokenized real-world assets. CEO Brian Armstrong said, “Better no bad law than a bad law.”
President Trump slams banks for holding up the CLARITY Act. Source: Donald Trump
Coinbase and Trump Criticize the CLARITY Act
Senator Bernie Moreno hopes it will become law by April 2026, but Galaxy Research Head Alex Thorn states that if it doesn’t pass by then, the chances of it becoming law in 2026 are very low. Trump’s post blaming banks shows that the bill has turned in favor of Wall Street.
BTC Market Moving Sideways Amid CLARITY Uncertainty
Regulatory uncertainty is affecting BTC: Price $72,226.95 (+2.02% 24h), RSI 55.26, trend sideways, Supertrend bearish. EMA 20: $69,577. Supports: S1 $70,432 (strong, -1.82%), S2 $68,198 (strong). Resistances: R1 $74,586 (very strong, +3.97%), R2 $78,962. Investors should follow BTC detailed analysis and BTC futures. Laws like CLARITY could shift BTC dominance to altcoins (ALT).
Source: https://en.coinotag.com/gnosis-founder-clarity-act-will-centralize-crypto