Could Sept. 15 Open the Institutional DeFi Floodgates? Former Lawmakers Say CLARITY Act Is the First Step

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• Former US lawmakers Tim Ryan and David McIntosh say the Sept. 15 CLARITY Act vote could improve institutional confidence in DeFi, but regulatory implementation will still determine how quickly capital moves onchain.

• McIntosh expects tokenized Treasuries to move first, with private credit and other real-world assets offering a larger long-term opportunity as institutions become more comfortable with onchain infrastructure.

• Ryan warns that continued US regulatory uncertainty could push developers, capital, and financial infrastructure overseas, while other jurisdictions move ahead with clearer digital-asset frameworks.

Institutional finance is already moving onchain before Washington has finished writing the rulebook.

On Aug. 27, Virtu Financial, M1X Global, and Tradeweb completed a fully onchain repo using a sovereign digital bond as collateral, with the securities delivery, cash leg, and return settling atomically on the Canton Network. Meanwhile, distributed tokenized real-world assets stand at roughly $38.7 billion, showing how quickly traditional assets are beginning to move onto blockchain infrastructure.

The question now is whether US regulation can catch up.

On Sept. 15 at 2:15 p.m., the Senate is scheduled to take up cloture on the motion to proceed to H.R. 3633, the Digital Asset Market Clarity Act. It is a procedural vote rather than final passage, but it will test whether supporters can secure the 60 votes needed to advance the legislation.

Sept. 15 Could Turn DeFi Interest Into Capital

Former US Congressman Tim Ryan, Lumia Bipartisan Policy Officer and Shyft Policy Board Member, told CCN that the first effect of progress on CLARITY would likely be greater institutional confidence.

“The first thing that changes is confidence, since institutions are not going to commit meaningful capital if they cannot tell which regulator has authority or what the rules will be next year. A successful vote on September 15 would bring a wave of money into DeFi, and it would show that Congress is serious about creating a durable framework. That is when interest can begin turning into action,” said Ryan.

But congressional approval would only establish the legal foundation.

Former US Congressman David McIntosh, Lumia Bipartisan Policy Officer and Shyft Policy Board Member, said institutions would still need regulators to translate the legislation into rules they can actually follow.

“Markets can price risk, but they can’t price a rulebook that is unsettled across agencies or changes with each administration. Even if CLARITY moves forward, institutions will still need clear implementation. The legislation would provide the statutory foundation, but regulators must turn it into a consistent and workable path to compliance. That is what converts legal progress into deployable capital. I have confidence that the current leaders at SEC, CTFC, and Treasury are very capable and ready to implement the pro-growth regulatory decisions when Congress gives them the green light by passing the Clarity Act,” said McIntosh.

Source: finance.yahoo.com