Friederike Ernst, co-founder of Gnosis, has expressed concerns that the U.S. CLARITY Act could centralize the cryptocurrency market by empowering large financial institutions. Ernst highlighted that the bill's provisions suggest market activities should occur through centralized intermediaries, which may diminish the role of blockchain users as active network participants. Despite these concerns, Ernst acknowledged that the CLARITY Act offers some regulatory clarity between the SEC and CFTC, and includes protections for peer-to-peer transactions and self-custody. The bill remains contentious in Congress, with debates focusing on stablecoin yield distribution. Alex Thorn of Galaxy Digital noted that the bill's chances of passing could diminish if no progress is made by April 2026.