Early Airbnb, DoorDash backer Y Combinator says Clarity Act could bring crypto to 'every' portfolio company

Y Combinator, the accelerator and early backer behind companies like Airbnb and DoorDash, said that someday all of its portfolio companies will use crypto.

"We think all YC companies will use crypto technology, like stablecoins, before long," the firm said. "Not just crypto startups, not just fintech startups, but every company."

The firm has also backed companies like Coinbase, OpenAI, Stripe, Reddit, OpenAI and Kalshi.

Y Combinator's post was principally focused on convincing Congress to pass the crypto market structure bill known as the Clarity Act. The legislation holds the promise of possibly unlocking a massive wave of fresh investment into digital assets by providing regulatory clarity and establishing rules for how crypto assets are issued, traded and overseen in the U.S.

For a new era in digital assets to begin, Y Combinator argues that crypto needs to integrate with traditional financial institutions like banks and brokers. The accelerator said that Clarity Act paves the way for that integration.

"The Act defines which digital assets are securities vs. commodities, creates a registration path with the CFTC, and ensures customer assets become customer property in bankruptcy," said Y Combinator.

Depending on who you ask, crypto market structure legislation either has a good chance of passing with bipartisan support or faces an uphill battle due to limited Democratic backing and the approaching midterm elections, which could make some Republicans hesitant to support the effort.

President Donald Trump's direct involvement in the crypto industry has also complicated the debate, raising ethics concerns and giving political opponents another reason to oppose the legislation.

Over the past year, lawmakers have worked to advance legislation establishing a regulatory framework for digital assets, but the effort has encountered several obstacles. One sticking point has been the treatment of stablecoin rewards, which allow users to earn yield on deposited funds.

Banks argue such rewards could siphon deposits away from traditional financial institutions, while crypto firms contend that restricting them would stifle innovation and limit competition.

The Senate Banking Committee advanced its market structure proposal last month. The next major hurdle is a vote by the full Senate.