Much of the crypto industry is still recovering from the CLARITY Act’s defeat in Congress, but one of its best-known regulators isn’t mourning its failure. Chris Giancarlo, former chairman of the US Commodity Futures Trading Commission (CFTC), says the bill’s failure may ultimately be good for crypto.
“I’m quite satisfied that Clarity didn’t pass. We’re going to be just fine,” Giancarlo said in a recent interview.
Why The CLARITY Act Failed
Giancarlo said the bill began to “die a slow death” during its final six months. It dragged on for too long and tried to satisfy every interest group, accumulating extra provisions until it became “unloved by everybody.”
He doesn’t expect the bill to return “anytime soon.”
Why Crypto May Not Need It
Giancarlo argued that the US has rarely enacted laws before new technologies emerge. There was no foundational law for the internet, big data or artificial intelligence, he said, and each developed into something remarkable without one.
Writing rules first is “sort of a European thing,” Giancarlo said. It leads innovators to build around government demands rather than what customers need.
He said the SEC and CFTC are now writing rules using the authority they already have, addressing the industry’s real needs. The main reason crypto pushed so hard for a law, he added, was to ensure the hostility of the Biden years never returned.
Did Trump’s Memecoins Kill The Bill?
Asked whether President Donald Trump’s crypto interests had hurt the CLARITY Act, Giancarlo said: “I think that’s true.”
He described the Trump coin and Melania coin as “ill-advised” and said the issue had become “a political football.” Giancarlo noted that when he led the CFTC, no rule barred him from owning Bitcoin, but he chose not to hold any while writing crypto rules. “Statesmen should self-impose some restrictions,” he said.
Trump Still A Net Positive, Giancarlo Says
Despite those criticisms, Giancarlo believes Trump has been good for crypto overall. He said the best decisions were the appointments of crypto-friendly regulators:
- Paul Atkins as chair of the SEC
- Mike Selig as chair of the CFTC
- Gould as head of the Office of the Comptroller of the Currency
Giancarlo praised Selig, who once worked for him, and said Selig is doing “everything he can” with the authority Congress has given him.
The US Is Winning The Crypto Race
Giancarlo said the United States is “winning the crypto race right now.” He described the United Arab Emirates as strong but regional, and said the US has the world’s largest financial market and deepest pool of tech talent.
He also criticized Senator Elizabeth Warren and others for wanting people to stick with “paper checks and branch banks.” Younger generations who grew up online won’t accept an analog financial system, he said.
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