Brookings Institution researchers warn that the Clarity Act could result in "regulation in name only, without real regulation."

CoinFeed reported on May 29th, citing CoinDesk, that Brookings Institution researcher Aaron Klein stated on The Policy Protocol that if the Clarity Act expands the powers of the U.S. Commodity Futures Trading Commission (CFTC) to regulate crypto assets, but lacks the necessary personnel, budget, and expertise, it could result in "apparent regulation, but in reality, a lack of substantive oversight." Klein pointed out that the CFTC was originally designed for the futures market and is ill-equipped to handle the proposed scale of crypto regulation, noting that the agency's regulatory capacity has weakened in recent years due to staff turnover and restructuring. He recalled the experience of the Dodd-Frank era, stating that fragmented regulation and multiple regulatory bodies can lead to delays and vacuums, and expressed concern about a repeat of this in the crypto and prediction markets.