BitGo CEO Mike Belshe warned that the failure of the Clarity Act exposes the U.S. market to systemic risk by allowing single entities to simultaneously operate exchange, brokerage, and custody businesses. Belshe argues this consolidated structure creates vulnerabilities exceeding those of Lehman Brothers, as the collapse of an exchange holding customer assets in custody could destabilize the entire market.
The warning highlights concerns over vertical integration in crypto infrastructure, where a broker failure might be contained but an exchange-custodian failure would trigger cascading market damage. Belshe's comments underscore the potential consequences of regulatory gaps in separating critical financial functions within digital asset firms.
BitGo CEO Warns Clarity Act Failure Creates Systemic Risk for U.S. Crypto Market
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