Former House Financial Services Chair McHenry Says Clarity Act Could Rival 1996 Telecom Law

Former U.S. House Financial Services Committee Chairman Patrick McHenry said the Clarity Act could produce a regulatory overhaul comparable to the innovation sparked by the Telecommunications Act of 1996. He argued that the bill must pass if the U.S. is to preserve its lead in the digital-asset industry.

In an op-ed published July 18, McHenry wrote that the Clarity Act now moving through Congress is the biggest and most forward-looking technology regulatory bill since the 1996 telecommunications law. The U.S., he wrote, is at a crossroads: It can either maintain its status as the world's leading technology and financial hub or surrender that position to rival nations.

McHenry also argued that U.S. financial regulation became somewhat conservative after the global financial crisis, while voicing support for the Clarity Act. The measure is aimed at future innovation rather than crisis response, he wrote, adding that companies want markets governed by clear rules.

He also said the internet industry was able to grow because reasonable regulations 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 wrote that the digital-asset market structure bill is gaining broad support, much like the GENIUS Act, a stablecoin regulation bill that passed with bipartisan backing. With other countries overhauling their rules, he said, the U.S. should use the Clarity Act to attract global capital and innovation.