While acknowledging bipartisan support exists for the legislation, Rafique said party politics are likely to outweigh the industry’s push for regulatory clarity.

He dismissed Democratic concerns over ethics provisions as inconsistent, arguing lawmakers should instead adopt broader restrictions on public officials participating in financial markets.

Despite his skepticism, Rafique described the Clarity Act as critical to the future of the U.S. digital asset industry. He said clear federal rules would help retain entrepreneurs, investment and intellectual property that are increasingly being built overseas.

“Without clarity, entrepreneurs will continue to stay offshore,” Rafique said, pointing to companies such as Hyperliquid and Backpack,…