The legislation assumes that all crypto activity must pass through financial intermediaries licensed by the US government, warns Gnosis co-founder.
The regulatory provisions outlined in the US Digital Asset Market Structure Clarity Act, otherwise known as the CLARITY Act, threaten to give large financial institutions control over crypto, according to Dr. Friederike Ernst, co-founder of the Gnosis blockchain protocol.
Regulations in the CLARITY crypto market structure bill assume that activity must pass through centralized intermediaries, which risks consolidating crypto rails in the hands of a few entrenched players, Ernst told Cointelegraph.
“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,” she said. Ernst added:
