Virginia has been a quiet leader in the blockchain and cryptocurrency revolution. From Shenandoah Valley vineyards using blockchain for weather tracking to family owned farms in Highland County accepting crypto to coworking clubs like mine in downtown Richmond selling memberships via Bitcoin, there are many local innovative businesses using this multipurpose technology.
However, the legal clarity that would allow these local businesses to thrive has not always been there. Despite legislative efforts in the past, there are still questions on how to classify or separate these businesses and use cases.
That’s why it is exciting to see Congress consider the Digital Asset Market Clarity (CLARITY) Act. Without it, Virginia’s entrepreneurs, investors and everyday users will be stuck continuing to navigate outdated and ambiguous laws that were written nearly a century ago, when the most advanced financial technology was a rotary phone.
Let’s be honest: the current laws simply weren’t built for blockchain, digital assets and cryptocurrency. Current laws were drafted in the 1930s. They don’t account for how a decentralized autonomous organization (DAO) lets people collaboratively manage a business without hierarchy. They don’t define what a decentralized network is. They certainly don’t offer a clear path for digital assets like cryptocurrencies to move from securities to commodities under the appropriate federal oversight.
This bill provides a clear legal definition of decentralized networks, leveling the playing field so that small innovators aren’t pushed out by regulatory ambiguity that only the biggest players can afford to navigate with large legal teams. It sets a structured path for digital assets to transition from securities to commodities, and it clearly outlines the oversight roles of both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), ensuring both agencies work together to create balanced rules and protect consumers.
Most importantly, it offers a legal on-ramp for businesses that want to comply.
This doesn’t mean we ignore risk. The CLARITY Act introduces guardrails without crushing innovation. It responds to the reality that only 0.15% of crypto activity is linked to illicit use, and that most businesses and builders in this space want to follow the rules.
In Virginia, our leaders have made strides to support the industry with legislation, but we are still taking risks until the federal government offers legislation. The industry isn’t running from regulation but wants to operate within the U.S. regulatory system. It wants to build trust with customers and grow responsibly. The only thing missing is action from Congress.