According to The Block, BitGo CEO Mike Belshe said the failure of Clarity created a situation in which systemic risk emerged from a single firm performing multiple critical financial functions — including exchange, brokerage, and custody services.
Belshe highlighted that when one entity controls several interconnected roles within the crypto infrastructure, vulnerabilities in any one area can propagate through the broader market. He noted that Clarity’s collapse illustrated how concentrating these responsibilities in one organization increases exposure if that firm faces operational or regulatory challenges.
The observation emphasizes the importance of structural separation when assessing risk in digital asset services. It reflects concerns about resilience and redundancy in current market design, particularly where fewer providers dominate multiple operational layers.
