•    "CLARITY legitimizes risky and exploitative crypto industry practices. The bill has massive exemptions for a wide swathe of the industry, essentially amounting to a get out jail free card for many risky crypto products and practices. Crypto firms are allowed to trade against their clients while keeping them in the dark. The investor protections that are included are weaker than existing law and largely leave investors to fend for themselves. And the bill’s weak or nonexistent measures to address money laundering and illicit finance mean crypto will continue to fuel and finance criminal actors and national security threats." Source: Americans for Financial Reform

•    "Few if any token issuers will ever engage with that more rigorous process, given that the CLARITY Act already offers so many loopholes a token issuer could take advantage of instead of conceding that their offering represents an investment contract. Crypto issuers will claim they’re DeFi; claim that they're not offering investment contracts; claim that they're collectibles or meme coins; claim that they’re airdrops, or claim that they're subject to the [bill’s] grandfathering provision." Source: Amanda Fischer, Policy Director at Better Markets

•    "There is worry about the CLARITY Act’s hands-off approach to certain crypto markets, particularly decentralized finance (DeFi). The bill, by the insistence of the crypto industry and House Republicans, explicitly carves out DeFi activity from its novel regulatory framework… [DeFi activity] is increasing rapidly, and I'm guessing it's going to be the majority of transactions very soon. I'm concerned about this bill and essentially launching a global naval strategy, and putting all your ships on Lake Superior when you know there's an ocean out there that you're not covering." Source: Rep. Sam Liccardo (Democrat, California, District 16)