Katherine Kirkpatrick Bos, Head of Legal at Chainlink, offered a stark assessment of the Clarity Act's prospects after the House canceled the final two weeks of its September legislative schedule.
Kirkpatrick Bos characterized the development as "devastating for Clarity," noting that many market participants had invested significant effort in advancing the legislation. She described it as "the ultimate way to futureproof all of the good work that's being done."
Legislation Versus Regulatory Guidance
Kirkpatrick Bos argued that regulatory guidance from agencies, however well-intentioned, does not substitute for statutory law. Both the CFTC and SEC have offered assurances about future-proofing the sector, she noted, but legislation provides greater durability.
"The best way you future proof things is legislation, because it's very difficult to amend or to undo legislation," she said. "It's much easier to change rulemaking or guidance, which is a lot of what we're seeing now."
She expressed encouragement that financial regulators are moving quickly to fill the legislative gap with clarity and guidance in the interim.
Durability Concerns and Industry Coordination
Despite regulatory momentum, Kirkpatrick Bos identified durability as her primary concern. She questioned whether guidance could be preserved over longer timeframes without legislative backing.
Her proposed approach centers on expanding participation from established financial institutions. "The more that we are embedded with TradFi, the more sophisticated large institutions are part of the discussion and part of the engagement, the harder it's going to be to undo all of this," she said.
