The CLARITY Act, aimed at regulating the crypto market structure, may inadvertently impose Bank Secrecy Act compliance, potentially increasing surveillance and pressure on privacy-focused cryptocurrencies. According to NS3.AI, discussions within the crypto and banking sectors highlight tensions surrounding stablecoin yields, while privacy issues remain insufficiently addressed in the legislation. This regulatory uncertainty could compel crypto intermediaries to implement strict identity verification processes, limiting privacy assets and establishing conservative standards without comprehensive congressional discussion.