The CLARITY Act and the controversies surrounding meme structure

Passing the CLARITY Act — a bill aimed at establishing a clear regulatory framework for digital assets in the United States — is facing significant obstacles in the Senate. According to analysis from NS3.AI, the factors complicating the democratization of digital assets are not only technical issues but also political debates related to meme bears and other digital currencies. Caitlin Long, CEO of Custodia Bank, has provided in-depth analysis of these hurdles when commenting on the prospects of passing the CLARITY Act.

Digital Asset Regulatory Framework: The Ambition of the CLARITY Act

The CLARITY Act is designed to provide clear legal guidance to help the cryptocurrency industry develop sustainably and securely. The main goal of this legislation is to clearly define the regulatory scope of various national agencies over digital assets, thereby creating a stable legal environment for businesses operating in the sector.

Meme Bears and Political Controversies Hindering Progress

One of the main issues blocking bipartisan support for the CLARITY Act is the controversy surrounding meme bears and related digital currencies. These debates are not only technical but also highly political, especially when involving the families of American political figures such as President Donald Trump. Concerns over ethics and personal interests have created significant barriers, delaying progress on the legislation.

Challenges from DeFi, Stablecoins, and Ethical Concerns

Beyond meme bear controversies, the decentralized finance (DeFi) sector and stablecoins are also major points of contention. These disagreements stem not only from differing technical perspectives but also from deep ethical concerns and risk management issues. Market volatility and investor safety worries further complicate the situation.

The Industry’s Long-Term Confidence in Crypto Regulation

Despite these challenges and current market fluctuations, Caitlin Long remains optimistic about the long-term prospects of cryptocurrency legislation. She asserts that bear markets — prolonged downturns — are actually valuable opportunities to educate the public and build a solid foundation for the industry. This perspective reflects a long-term vision among experts to develop a durable legal framework for meme bears, DeFi, stablecoins, and the entire digital asset ecosystem.