Battle over Clarity Act: Market Power vs Financial Control

In this paper, we discuss:

• The Clarity Act’s attempt to unify digital asset oversight and clarify the SEC–CFTC jurisdictional split;
• A growing divide between banks prioritizing financial stability and crypto firms seeking operational flexibility;
• Stablecoin rewards as the core fault line, raising concerns over deposit flight versus market competitiveness;
• The FTX collapse reinforcing calls for stricter, SEC-style supervision;
• The risk that prolonged uncertainty could push capital and innovation to the EU, Singapore, and the UAE.

Download PDF: Clarity Act – February 2026