Y Combinator backs Clarity Act as catalyst for broader crypto use across portfolio companies

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Y Combinator backs Clarity Act

Highlights

Y Combinator urges Congress to pass the Clarity Act, citing regulatory clarity as a catalyst for widespread crypto adoption among its portfolio companies.
The Clarity Act would define digital assets as securities or commodities, provide a CFTC registration path, and ensure customer asset protection in bankruptcy.
Political hurdles persist as stablecoin rewards and President Donald Trump's involvement complicate bipartisan Senate support, with a full Senate vote pending.

Push for crypto market rules

As reported by The Block, Y Combinator says it wants Congress to pass the Clarity Act because the bill could provide the regulatory clarity needed to bring digital assets into mainstream business use in the U.S.

The accelerator says it expects all of its portfolio companies to use crypto technology, including stablecoins, before long, not only crypto or fintech startups. Y Combinator, an early backer of Airbnb, DoorDash, Coinbase, OpenAI, Stripe, Reddit and Kalshi, says the legislation would help open a new phase for the digital asset industry.

Y Combinator says the bill sets out which digital assets count as securities and which count as commodities, creates a registration path with the CFTC, and ensures customer assets become customer property in bankruptcy. In its view, those provisions help create the conditions for crypto to integrate with banks and brokers.

Political hurdles and sector impact

The proposal is advancing as lawmakers continue working on a federal framework for digital assets after more than a year of efforts marked by several obstacles. One of the main sticking points remains the treatment of stablecoin rewards, which let users earn yield on deposited funds.

Banks argue those rewards could pull deposits away from traditional financial institutions, while crypto firms say tighter limits would curb innovation and weaken competition. The debate also remains politically sensitive, with views split on whether the legislation has enough bipartisan support to pass.

President Donald Trump's direct involvement in the crypto industry is also complicating the debate by raising ethics concerns and giving opponents another reason to resist the measure. The Senate Banking Committee advanced its market structure proposal last month, and the next major hurdle is a vote by the full Senate.

In our earlier article on Coinbase’s CFTC approval to offer global crypto perpetual futures to U.S. traders, we noted this as a key regulatory milestone that could open a new derivatives revenue stream. We also highlighted Coinbase’s broader diversification push, including AI-driven trade execution, stablecoin-powered payout partnerships, and growing prediction-market revenues, while flagging a largely range-bound technical outlook.

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