Chainlink Legal Head Warns Clarity Act Prospects ‘Devastating’ After House Cancels September Schedule
Katherine Kirkpatrick Bos, Head of Legal at Chainlink, delivered a blunt assessment of the Clarity Act’s legislative future following the U.S. House of Representatives’ decision to cancel the final two weeks of its September session.
“Devastating for Clarity”
When asked whether the digital asset industry has entered a “post-Clarity era,” Kirkpatrick Bos did not hesitate. “We just heard that the House cut two weeks from its schedule, the final two weeks of its September schedule canceled, which is devastating for Clarity,” she said.
She characterized the development as “very frustrating” for market participants who had advocated strongly for the legislation, describing the bill as “the ultimate way to futureproof all of the good work that’s being done.”
Why Legislation Matters More Than Guidance
Kirkpatrick Bos argued that regulatory guidance from agencies, however well-intentioned, cannot substitute for enacted law. “We’ve heard future proof again and again from both the CFTC and the SEC,” she said, “but the three of us definitely know that the best way you future proof things is legislation, because it’s very difficult to amend or to undo legislation. It’s much easier to change rulemaking or guidance, which is a lot of what we’re seeing now.”
She acknowledged encouragement at the pace of regulatory action. “I am happy to see our financial regulators moving quickly to fill this legislative gap and to provide clarity, to provide guidance,” she said.
Her Real Concern: Can Guidance Hold?
Despite that optimism, Kirkpatrick Bos emphasized durability as her underlying worry. “My only concern as a scenario in two and a half years, what can we do to cement that guidance?” she asked. Her proposed solution centers on broader participation from established financial institutions.
“The best tactic, the best way we can really underscore the seriousness of providing that legal clarity that should not be undone, is getting more people at the table,” she said. “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.”
