A16z Crypto Warns U.S. Risks Falling Behind MiCA as Senate Panel Advances CLARITY Act
The Senate Banking Committee voted on May 14, 2026, to advance the Digital Asset Market CLARITY Act, bringing the U.S. closer to its first comprehensive law governing crypto market structure.
A16z Crypto general counsel and head of policy Miles Jennings called the committee's bipartisan markup a milestone for the industry. He said the proposal builds on the GENIUS Act's stablecoin framework, enacted in July 2025, and could extend clearer protections for builders across a wider range of blockchain activity.
Next, the bill heads to a full Senate vote. The Senate Banking Committee text is expected to be combined with a companion portion handled by the Senate Agriculture Committee into a single package. If the Senate passes the merged measure, it would move to the House.
The House has already advanced its own version, HR 3633. That bill passed in July 2025 by a 294–134 vote, including support from 78 Democrats. A presidential signature would be required for final enactment.
CLARITY reflects years of legislative efforts to define crypto oversight. Senators Cynthia Lummis and Kirsten Gillibrand introduced an early bipartisan framework in June 2022. FIT21 (the Financial Innovation and Technology for the 21st Century Act) cleared the House in 2024 with 279 votes, including 71 Democrats, adding momentum that helped drive Senate drafting through late 2025 into 2026.
A central issue CLARITY seeks to address is the lack of clear jurisdictional lines between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Jennings criticized what he described as "regulationbyenforcement," arguing that shifting interpretations have burdened responsible developers while leaving room for misconduct.
The bill aims to set standards for when a digital asset is treated as a security versus a commodity, establish oversight rules for crypto exchanges, and add consumer protections for digital asset trading.
Jennings also argued that blockchain networks should not be treated like traditional companies. He said companies rely on centralized control, while networks coordinate participants through shared rules without a single controlling party. Applying corporate legal frameworks to networks, he warned, can elevate intermediaries that capture value that would otherwise accrue to users.
A16z Crypto pointed to ridesharing and music streaming as examples of platform models where operators collect most of the revenue while contributors receive a smaller share. In contrast, Jennings said blockchain networks can function as infrastructure governed by transparent rules and operated by participants, allowing value to flow to the edges rather than concentrate at the center.
He cited the GENIUS Act as proof of what targeted crypto legislation can enable, saying its July 2025 passage coincided with measurable adoption gains and helped bring stablecoins deeper into mainstream use, including integrations involving AI agents.
Jennings framed the competitive backdrop as urgent. The European Union's MiCA regime and the United Kingdom's crypto rules already provide more defined frameworks than the U.S., he said. While no jurisdiction has perfected regulation, he warned that clearer rules abroad could ultimately draw startups, capital, and jobs away from the United States.
A16z Crypto said CLARITY is intended to counter that risk by giving builders a legal foundation to launch blockchain networks domestically, raise capital within U.S. borders, and operate without the structural compromises imposed by years of regulatory uncertainty. The firm said it plans to publish a more detailed builder-focused breakdown of what CLARITY does and does not cover once the bill reaches the Senate floor and final amendments are known.
