CLARITY Act Could Mirror Telecom Act, Patrick McHenry Says

A16z Crypto published an essay by U.S. lawmaker Patrick McHenry titled "The Time for Clarity Is Here: The Next-Generation Telecoms Act," in which he compared the proposed CLARITY Act with the 1996 Telecommunications Act. According to Odaily, McHenry said the bill could serve as an important foundation for U.S. financial innovation. McHenry said his more than 20 years in Congress showed him that timely legislation can move a country forward, while legislative delays can leave the U.S. catching up in key technology areas. He said the U.S. faces a choice between maintaining its position as a global technology and financial center or ceding that advantage to competitors. He said the CLARITY Act is one of the few forward-looking financial bills in recent years and is intended to support new technologies while creating consumer protection mechanisms. He added that the bill has broad bipartisan support and involves coordination across multiple congressional committees. McHenry said U.S. financial regulation has long operated in a "crisis response mode." Since the 2008 financial crisis, he said most major reforms have addressed past risks rather than building a framework for future technological innovation. He said crypto market structure legislation could break that pattern and become the first major effort in nearly 30 years to proactively build a future financial system. He also rejected the view that existing securities laws are sufficient for the crypto industry, saying businesses and entrepreneurs are not opposed to regulation but want clear rules. McHenry said the CLARITY Act, if passed, would give the digital asset industry regulatory certainty, protect consumers and investors, and provide enforcement agencies with tools to combat crime and bad actors. He said several crypto-related bills, including the GENIUS Act for stablecoin regulation, have bipartisan support, and that more lawmakers now recognize that digital assets will not disappear. McHenry added that the U.S. needs clear rules to maintain its competitive edge.