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

In a report from Beincrypto, coverage of the stablecoin yield debate has obscured a more consequential issue: the CLARITY Act’s potential to extend Bank Secrecy Act–style surveillance into regulated crypto roles. A recent White House meeting between industry insiders, banking representatives and advisors revived tensions over banks helping shape crypto rules, with discussions focused publicly on yield-bearing stablecoins but quietly raising questions about privacy and oversight.

By formally defining regulated crypto roles, the CLARITY Act would implicitly push those actors into the existing financial compliance framework. With key obligations left undefined, intermediaries are likely to adopt expansive identity checks, sweeping transaction monitoring and heightened data collection, creating de facto standards.

That approach already leads major firms such as Binance, Coinbase and Circle to favor maximum on-chain visibility and avoid listing privacy-focused assets like Monero or Zcash.

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