Silicon Valley startup incubator Y Combinator has publicly expressed support for the U.S. CLARITY Act, revealing that the bill will face a preliminary vote in the Senate this week.

Y Combinator stated it is "bullish" on the bill, citing its benefits for the future development of the financial industry and U.S.-based fintech startups. Specifically, the bill reduces regulatory uncertainty for U.S. entrepreneurs building products on blockchain by clarifying the division of regulatory responsibilities and applicable rules.

In a supporting tweet, Y Combinator elaborated on the characteristics of blockchain: it enables instant asset transfers at very low costs ("pennies"), offers global accessibility, operates 24/7, and supports open API access. It compared this transformation to the significance of the internet for information—asserting that blockchain has equivalent transformative potential for all types of assets, including currency itself.

Y Combinator outlined three specific application scenarios expected to benefit: instant global payments costing less than a penny, trading markets that can settle transactions with sellers in seconds, and assets that can be traded continuously 24/7.

Y Combinator pointed out that for a long time, institutions have hesitated to invest in related fields due to unclear regulations, and startups often choose to build products outside the U.S. market. The organization explicitly called on the Senate to pass the CLARITY Act, positioning it as the institutional certainty needed by "the next wave of builders."

Mechanically, as an incubator, Y Combinator's portfolio includes many early-stage startups related to blockchain and fintech. If the CLARITY Act is passed and regulatory responsibilities are clarified, the direct beneficiaries will be these early-stage crypto and fintech startups that previously shied away from U.S. compliance costs due to regulatory uncertainty—enhanced regulatory certainty means lower barriers for these companies to secure funding and grow their user base. Conversely, offshore crypto companies that previously enjoyed a "gray area arbitrage" or relied on jurisdictional avoidance strategies may face renewed competition from domestic compliant competitors once U.S. market rules are clarified. Traditional institutional investors who previously avoided this sector due to regulatory risks may accelerate their funding allocations into the more clearly regulated U.S. blockchain startup ecosystem if the bill passes, leading to an influx of new capital.

Source: Public Information