Galaxy Digital's head of research, Alex Thorn, has raised concerns about the CLARITY Act, a proposed U.S. digital assets bill, warning it could lead to the largest expansion of financial surveillance since the Patriot Act. Thorn's report highlights the potential for the Office of Foreign Assets Control (OFAC) to gain new powers to intercept illicit assets, expanding beyond the current Specially Designated Nationals list. The bill, which faces a critical committee review by the end of April 2026, also introduces compliance obligations for decentralized finance applications, despite provisions like the "Keep Your Coins Act" aimed at protecting self-custody. Thorn also criticized the influence of major financial firms like JPMorgan and Fortress, which are lobbying the SEC to prevent tokenized assets from receiving preferential treatment. He argues that decentralized automated market makers should not be classified as exchanges due to their autonomous operation. Legislative debates continue, with key issues including the potential ban on passive stablecoin yields, which critics argue favors banking interests over public benefit.