BitGo CEO Mike Belshe stated that the failure to pass the CLARITY Act leaves the US market exposed to risks associated with platforms that combine exchange, brokerage, and custodial functions. Belshe noted that the industry is increasingly adopting this universal model without the necessary structural safeguards to mitigate concentration risks.
Belshe cited Coinbase as an example of a firm that operates an exchange while holding licenses for futures trading and derivatives clearing. He warned that if a major player with such consolidated functions experiences a failure, the impact could ripple across the entire sector, potentially exceeding the severity of the 2008 Lehman Brothers collapse.
The CEO emphasized that BitGo actively supported the CLARITY Act. He argued that while crypto exchanges can operate without this legislation, traditional financial institutions will likely proceed with caution due to regulatory uncertainty. Belshe criticized the US Senate for failing to resolve political differences, suggesting this inaction threatens capital markets.
