The Bill That Could Reshape Crypto In America with Greg Xethalis from Multicoin

July 23, 2026

AI Summary

5 min read

“If you wanted to bake an apple pie from scratch, you must first invent the universe.” That’s how Greg Xethalis, general counsel at Multicoin Capital, begins explaining the Clarity Act — the sprawling, 620-page bill that could become the first comprehensive federal framework for digital assets in the United States. Speaking on Empire, Xethalis walks through the bill’s origins, its core mechanics, and what it actually means for builders, investors, and the future of crypto regulation. The conversation is dense, but the through-line is simple: after a decade of state-by-state patchwork, the industry is finally asking for federal rules — and Clarity is the vehicle.

From 54 Licenses to One Regulator

The Clarity Act didn’t appear out of nowhere. Its roots trace back to 2014, when the New York Department of Financial Services created the BitLicense — the first government regulation of crypto intermediaries. That framework, and similar ones in states like Wyoming, forced crypto companies to navigate a maze of 54 separate licensing regimes: 49 states (Montana doesn’t regulate money transmitters), plus D.C. and four territories. Each had its own examiners, many under-resourced and unfamiliar with crypto. “It’s not a particularly good fit,” Xethalis says, especially for businesses doing trading or custody rather than simple money transmission.

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What you'll learn

1 (00:00) **Disclaimer and Intro** - Host Jason reads a legal disclaimer and introduces Greg Xethalis, General Counsel of Multicoin Capital.
2 (01:25) **What is the Clarity Act and Where Did It Come From?** - Greg explains the origin of the Clarity Act, starting with the 2014 New York BitLicense.
3 (06:56) **Who Introduced the Bill and Why?** - Greg details the bipartisan sponsors and explains the industry’s motivation for seeking regulation.
4 (11:08) **The Four Buckets of the Clarity Act: Bucket One - Intermediaries** - Greg outlines the first and most foundational component: regulating crypto intermediaries at the CFTC.
5 (15:17) **Bucket Two: Taxonomy and Securities Clarification** - Greg explains how the bill defines digital assets and shrinks the "red zone" of legal uncertainty.
6 (19:01) **Defining a Digital Commodity: The Maturity Test** - Greg breaks down the core definitions of a network token and an ancillary asset.
7 (23:09) **Bucket Three: Developer Protections and DeFi** - Greg discusses protections for software developers and how the bill addresses decentralized finance (DeFi).

+ Full timestamped outline available in the app

Show Notes

Is CLARITY the breakthrough crypto needs or just the beginning?

This week, Jason and Multicoin’s Greg Xethalis unpack how the bill could reshape crypto’s regulatory future.

They explore CFTC oversight, token classification, DeFi protections, disclosure requirements, and the fight threatening its passage. Enjoy!

TIMESTAMPS:

00:00 Intro

01:20 How CLARITY Came To Be

07:08 Who Built The CLARITY Act?

11:05 What CLARITY Actually Does

15:13 The New Token Taxonomy

18:13 Ads (Peaq)

18:58 When Is A Blockchain Mature?

23:01 Protecting DeFi And Developers

33:51 The Future Of Token Disclosures

40:14 What CLARITY Could Unlock

44:30 Closing Thoughts

Robots will soon outnumber humans onchain. peaqOS turns them into a new trusted liquid asset class, with yield tied to real-world workloads. It gives robots all they need to do business on any chain — and lets humans earn from automation.

Explore the Machine Economy: https://peaq.xyz

FOLLOW GREG

› X/Twitter – https://x.com/xethalis

› Multicoin – https://x.com/multicoin

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› Jason – https://x.com/jasonyanowitz

› Telegram – https://t.me/+CaCYvTOB4Eg1OWJh

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EVENTS

› Join us at Digital Asset Summit 2026 Asia October 7th & Digital Asset 2026 London November 10-11th

https://blockworks.com/events

DISCLAIMER

Nothing said on Empire is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only. Any views expressed are opinions, not financial advice. Hosts and guests may hold positions in the companies, funds, or projects discussed.