Former House Financial Services Chair McHenry Says CLARITY Act Is Regulatory Overhaul on Par With 1996 Telecom Law

Former U.S. House Financial Services Committee Chairman Patrick McHenry said the CLARITY Act would bring a regulatory overhaul comparable to the innovation unleashed by the 1996 Telecommunications Act. He argued the bill must pass if the U.S. is to retain leadership in the digital-asset industry.

In an opinion piece published on July 18, McHenry wrote that the CLARITY Act now moving through Congress is the most sweeping and forward-looking technology regulatory legislation since the 1996 telecommunications law. The U.S. is at a crossroads, he wrote, deciding whether to remain a global center for technology and finance or cede that position to rival countries.

McHenry also argued that U.S. financial regulation had become somewhat conservative after the global financial crisis. He cast the CLARITY Act as legislation aimed at future innovation rather than crisis response, saying companies want markets governed by clear rules.

He added that the internet industry was able to grow because reasonable regulation and consumer protections were put in place. The blockchain industry likewise needs a clear regulatory framework before innovation and investment can accelerate in earnest.

McHenry said the GENIUS Act, a stablecoin regulation bill, passed with bipartisan support and that digital-asset market structure legislation is also attracting broad backing. As other countries update their regulatory systems, he wrote, the U.S. should use the CLARITY Act to attract global capital and innovation.