The CLARITY Act has been postponed again, and the Genius Act is actually the main thread of the entire 25-26 bear market cycle. At present, traditional banking and law enforcement believe that the current version of the CLARITY Act has significant anti money laundering and national security vulnerabilities, Supporters of encryption believe that the so-called anti money laundering vulnerabilities are nothing more than a defense war launched by traditional banks to prevent a massive loss of deposits in commercial banks. In my opinion, the CLARITY Act has strong endorsement from the current government and core members of both parties in Congress, and the possibility of a complete abortion is extremely low. Most industry insiders also believe that the bill will eventually be passed. But I also feel that the restrictions on self custodial wallets and cross-border privacy transfers in the article will be forced to be significantly tightened as a bargaining chip to compromise with traditional banking. DeFi involving institutions must be sufficiently clean, requiring identity verification and tracking of funding sources. DeFi protocols that operate outside of compliance boundaries may face severe liquidity constraints. In addition, as long as the amendment reaches a political convergence, the market will quickly digest the negative impact. As the bill provides clear legal exemptions for decentralized governance (DAO governance does not constitute a single controlling entity) for the first time, public chains (especially Solana) that already have extremely high on chain throughput but were previously rejected by Wall Street due to securitization risks will face violent compensation from compliance capital.