The Clarity Act is viewed as a pivotal development in U.S. crypto policy, aiming to replace the previous 'regulation-by-enforcement' approach with clearer guidelines. However, experts argue that without reforming the existing tax framework, particularly the complexities surrounding Form 1099-DA, widespread adoption of cryptocurrency may not occur. This form, intended to enhance transparency, often results in confusion for users due to its lack of reliable cost basis reporting and incomplete data capture. The burden of reconciling thousands of transactions falls on individual taxpayers, which can deter retail investors. While the Clarity Act mandates audit trails to improve asset segregation and security, the operational demands it imposes could overwhelm smaller firms. The contradiction in U.S. policy—promoting innovation while enforcing a rigid tax regime—could hinder growth, as compliance challenges may push retail investors away. Other jurisdictions are developing more user-friendly frameworks, highlighting the need for the U.S. to align its tax policies with the realities of decentralized finance to foster broader participation.