Clarity Act risks repeat of Europe's mistakes, crypto lawyer warns

CoinTelegraph

by Yohan Yun

February 25, 2026

AI-Generated Deep Dive Summary

The Clarity Act, aimed at bringing regulatory clarity to the U.S. crypto industry, faces criticism from crypto lawyer Yuriy Brisov, who warns it risks repeating the mistakes of Europe's Markets in Crypto Assets Regulation (MiCA). Brisov highlights that both MiCA and the proposed Clarity Act attempt to regulate a rapidly evolving technology by creating static categories, which can stifle innovation and create regulatory barriers. Specifically, he points out that excluding certain DeFi activities from these frameworks may seem fair on paper but ultimately hinders progress by freezing DeFi's regulatory perimeter. The article explores how MiCA's treatment of DeFi has already proven problematic in Europe, with implementation challenges due to its lack of alignment with the fast-paced nature of decentralized finance. Brisov argues that this approach could slow down U.S. projects operating globally and create conflicts with international frameworks like the OECD's Crypto-Asset Reporting Framework (CARF). He suggests that a more flexible, case-by-case regulatory approach—rather than comprehensive acts like Clarity or MiCA—would better accommodate the dynamic nature of crypto assets. Brisov also critiques the potential interaction between Clarity's DeFi exemptions and cross-border compliance obligations under DAC8. This raises questions about whether U.S.-based projects will struggle to attract global clients, particularly in Europe, due to misalignment with frameworks like MiCA. He further warns that comprehensive regulation is inherently flawed because technological advancements outpace legislative processes, making such frameworks outdated quickly. The article also touches on the impact of Gary Gensler's departure from the SEC, noting that his influence was crucial in setting key regulatory precedents, such as clarifying risks associated with memecoins and crypto securities. Without a strong leader like Gensler, Brisov suggests there is a risk of stalling progress and creating uncertainty for businesses and investors navigating the evolving crypto landscape. Ultimately, the article underscores the importance of maintaining flexibility and alignment with global standards in crypto regulation to avoid stifling innovation and fostering confusion among market participants.

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Originally published on CoinTelegraph on 2/25/2026