The proposed Digital Asset Market Structure Clarity Act could shift control of cryptocurrency infrastructure toward centralised financial institutions, according to Friederike Ernst.
Ernst said the regulatory framework risks forcing crypto activity through government-licensed intermediaries, potentially undermining the decentralised ownership model that underpins blockchain networks.
“Blockchain’s real breakthrough was not just a new financial infrastructure. It was the ability for users themselves to become owners of the networks they rely on,”
Ernst said.
The legislation aims to clarify regulatory jurisdiction between the US Securities and Exchange Commission and the Commodity Futures Trading Commission.
However, Ernst warned the bill does not adequately protect open blockchain infrastructure and decentralised finance protocols, which could introduce centralisation risks similar to those in traditional finance.
The CLARITY Act has faced delays in Congress due to disagreements between the banking sector and crypto industry groups over whether stablecoin issuers should be allowed to share yield with users.