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BitGo CEO Mike Belshe warned that the Senate's failure to advance the Clarity Act leaves U.S. digital-asset markets exposed to concentrated custody and counterparty risks. The Senate rejected a motion to proceed on Sept. 15 after the bill failed to secure the 60 votes needed to advance. Speaking at Korea Blockchain Week 2026, Belshe said a firm that combines exchange, brokerage and custody services could become a point of failure for the wider market.
Why it matters
Belshe identified two risks in the one-stop-shop model: losing custody of digital assets and failing to manage credit exposure to counterparties. He said a lost private key can mean lost funds, making custody failures especially consequential when a firm also sits at the center of trading.
He compared the concentration of services to the 2008 collapse of Lehman Brothers, but argued the damage could be worse if a central marketplace failed alongside its brokerage and custody operations. That is Belshe's warning, not a claim that such a failure has occurred.
Market impact
Belshe pointed to Coinbase as an example of expanding roles, citing its exchange, futures commission merchant license and recently received derivatives clearing organization license. He said the Clarity Act would have addressed market-structure risks that remain unresolved after the Senate vote.
BitGo can continue operating without the legislation, Belshe said, but he expects banks and other traditional firms to move more slowly into digital assets. For investors, the issue raised by the vote is how much custody and counterparty exposure can accumulate inside a single provider before rules for those combined functions are settled.
Frequently asked questions
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Why did the Clarity Act fail to advance in the Senate?
A motion to proceed on Sept. 15 did not secure the 60 votes needed to advance the bill.
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What risks does Mike Belshe see in one-stop-shop digital-asset firms?
He identified custody failures and counterparty credit exposure as the two core risks when one firm combines exchange, brokerage and custody services.
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Why did Belshe compare the risk to Lehman Brothers?
Belshe argued that a failure involving a central marketplace as well as its brokerage and custody operations could be harder for the financial system to absorb than Lehman's collapse.
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How does Coinbase fit into Belshe's argument?
Belshe cited Coinbase's exchange, futures commission merchant license and recently received derivatives clearing organization license as an example of a firm taking on multiple market roles.
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How does Belshe expect the vote to affect traditional financial firms?
He said BitGo can continue operating without the law, but expects banks and other traditional firms to move more slowly into digital assets.
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