A White House Tweet Exposed the Real Risk in the CLARITY Act

The CLARITY Act debate has largely revolved around the tug-of-war between banks and crypto firms over stablecoin yield. While that conflict dominates coverage of what is framed as a market-structure bill, it obscures a quieter and potentially more consequential issue.

Once enacted, the CLARITY Act would formally legitimize regulated crypto roles and implicitly subject them to Bank Secrecy Act compliance. Even without explicit mandates, this risks entrenching a surveillance-first model that pressures…