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McHenry Pushes Clarity Act as Congress Weighs Crypto Rules
Former House Financial Services Chair Patrick McHenry is urging Congress to pass the Clarity Act, calling it the most significant tech legislation since 1996. The bill would create a federal crypto market structure.
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Congress is weighing legislation that would create a federal market structure for digital assets, pairing consumer protections with clearer operating rules for companies. The Clarity Act is the vehicle.
Patrick McHenry, the former North Carolina congressman who chaired the House Financial Services Committee before retiring in January 2025, is urging lawmakers to pass it. Now a senior adviser at Lazard, McHenry posted on X on July 16 that Congress can move beyond "reactive regulation" by passing legislation that gives entrepreneurs confidence in the digital asset sector.
In a Fortune op-ed, McHenry called the Clarity Act the most significant forward-looking technology legislation since the Telecommunications Act of 1996. He said the proposal would let Congress prepare for technological change instead of waiting for another crisis to force a response.
The former chairman contrasted the bill with financial reforms adopted after the 2008 crisis. In his view, the Clarity Act represents a rare chance to create comprehensive financial policy before a major disruption occurs. Rather than adapting rules written for older markets, Congress could create a dedicated structure for digital assets while the sector is still developing.
Consumer protection is central to the case. McHenry said the Clarity Act would establish safeguards for consumers and investors while giving law enforcement agencies better tools to identify criminals and other bad actors.