The US Digital Asset Market Structure Clarity Act (CLARITY), otherwise known as the CLARITY Act, has been criticised by Dr. Friederike Ernst, co-founder of the Gnosis blockchain protocol. The bill assumes that all activity must pass through centralized intermediaries, which could result in significant consolidation of crypto rails. Despite these issues, Ernst noted that the bill clarifies regulatory jurisdiction over crypto between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), protects peer-to-peer transactions and self-custody. However, Ernst warned that the failure of the bill to adequately protect open, permissionless blockchain rails and decentralized finance protocols risks bringing all the same issues of the legacy financial system to crypto.