US Failure to Pass CLARITY Act Could Let China Define Digital Finance

James E. Thorne, Chief Market Strategist at Wellington-Altus Private Wealth, warns that if the CLARITY Act fails to pass in Washington, China could gain significant influence over global digital-asset standards.

The debate surrounding the legislation extends beyond cryptocurrency regulation and touches on the future architecture of global finance, according to Thorne. He argues that control over rulemaking determines competitive outcomes before markets have fully matured.

Thorne pointed to historical precedents, such as the transfer of transistor technology after World War II and the gradual offshoring of semiconductor manufacturing, suggesting that the United States has allowed strategic advantages to erode at times. He views digital finance as a comparable inflection point.

The CLARITY Act is framed by Thorne not as an endorsement of every crypto asset but as a critical decision about market structure and financial leadership. He describes it as part of a broader contest over whether US capital markets will shape the next generation of financial infrastructure.