Could the CLARITY Bill 'Kill' DeFi in the U.S.?

DeFi leaders in the U.S. are collectively speaking out against the CLARITY Act, which is expected to be voted on by the House this week. According to them, #CLARITYAct will pose a direct threat to DeFi, forcing developers to leave the U.S. and transforming DeFi into disguised centralized exchanges.

The CLARITY Act is marketed as a comprehensive legal framework for crypto, but experts warn that many provisions will force DEXs like Uniswap and Jupiter to operate like Coinbase — meaning controlling users, limiting tokens traded, and losing the core decentralization.

Another major issue: the bill lacks clear regulations on self-custody rights for DeFi startups, leaving a loophole for future regulators to exploit, tightening #defi in an unfavorable manner.

“This bill is written for the 'big players,' while DeFi developers bear the brunt,” one expert warned. They are calling for the Senate to timely amend it, rather than hastily passing a legal framework that could stifle the nascent DeFi sector.

This is a wake-up call for the U.S. crypto industry: if CLARITY does not change, DeFi will no longer be 'decentralized'.

The crypto market carries high risks. Investors need to conduct thorough research before participating. #anhbacong