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Abra CEO Bill Barhydt said the United States should codify its evolving crypto regulations through the CLARITY Act, arguing that permanent legislation is necessary to support the growth of tokenized financial markets.
Speaking on Fox Business’ Mornings with Maria on Friday, Barhydt said tokenization, not just cryptocurrencies like Bitcoin, will drive the next phase of financial market infrastructure. He argued that federal legislation would provide startups, financial institutions, and investors with clearer rules as blockchain-based markets continue to develop.
Why Barhydt believes tokenization is next big shift
During the interview, Barhydt described tokenization as a broader shift toward financial systems that operate continuously across borders. He said investment advisers, broker-dealers, and other financial institutions are increasingly moving toward blockchain infrastructure powered by smart contracts, enabling financial services that operate beyond traditional market hours.
According to Barhydt, these “always-on” systems could expand access to financial products while reducing reliance on legacy market infrastructure.
Why Barhydt believes the CLARITY Act matters
Asked which policy change would have the greatest impact on the industry’s future, Barhydt pointed to the CLARITY Act alongside ongoing regulatory efforts by federal agencies. He said recent rulemaking by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) has helped establish clearer regulatory expectations for digital assets.
However, he argued that agency guidance alone is insufficient because future administrations could reverse those policies. “We need to codify these rules as law,” Barhydt said, adding that legislation such as the CLARITY Act would provide entrepreneurs and startups with explicit federal licensing and registration standards instead of relying on changing regulatory interpretations.
CLARITY Act still faces political roadblocks
Barhydt’s comments come as Senate Republicans continue negotiating the CLARITY Act, with stablecoin yield provisions emerging as one of the bill’s remaining points of contention.
According to reports, Senators James Lankford and Mike Rounds recently joined other Republicans in seeking changes, citing concerns that yield-bearing stablecoins could affect community bank deposits. While both senators support advancing crypto market structure legislation, they have indicated they want revisions to the yield provisions before backing final passage.
At the same time, U.S. Treasury Secretary Scott Bessent urged lawmakers to stop delaying the legislation, arguing that the bill has already undergone more than a year of bipartisan negotiations. In a post on X, Bessent said the Senate Banking and Agriculture Committees have completed their work and called on the Senate to bring the CLARITY Act to a floor vote without further delay.
Rulemaking alone is not enough
Barhydt said coordinated efforts by the SEC and CFTC are creating a regulatory foundation for products such as prediction markets and perpetual futures built on blockchain networks. He argued that turning those regulatory efforts into federal law would provide greater certainty for businesses developing tokenized financial products while reducing the risk of policy changes following future elections.
According to Barhydt, consistent legislation would allow companies to make longer-term investment decisions without facing repeated shifts in regulatory expectations.
Tokenization remains a central policy debate
Barhydt’s comments come as lawmakers continue negotiations over the CLARITY Act, which seeks to establish a comprehensive federal framework for digital asset markets.
The proposed legislation would clarify regulatory responsibilities between the SEC and CFTC, establish rules for digital asset intermediaries, and create a more consistent legal framework for blockchain-based financial services.
Supporters of the bill argue that regulatory certainty is necessary for tokenization and other digital asset applications to develop within the United States. At the same time, negotiations continue over the legislation’s final provisions before a Senate vote.
Also Read: Grayscale Urges Senate to Vote on CLARITY Act Before August Recess