Gnosis co-founder: The CLARITY Act may lead to the crypto market being dominated by centralized institutions

Friederike Ernst, co-founder of Gnosis, stated that the regulatory framework in the U.S. CLARITY Act may give large financial institutions greater control in the crypto market.

She pointed out that some provisions of the bill assume that market activities need to be conducted through centralized intermediaries, which could undermine the role of blockchain users as network participants and stakeholders. Ernst believes that if there is too much reliance on institutional intermediaries, users may revert to being "customers renting financial technology services" rather than actual participants in the network. However, she also noted that the bill clarifies the regulatory boundaries between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to some extent and provides certain protections for peer-to-peer trading and self-custody.

Currently, the CLARITY Act faces controversy as it progresses through Congress, with major disagreements centered around the issue of stablecoin yield distribution. Alex Thorn, head of research at Galaxy Digital, previously stated that if the bill fails to advance before April 2026, the probability of its passage will significantly decrease.