Concerns arise about a new section in the amended CLARITY Act

Some industry players have raised concerns ahead of today’s CLARITY Act, a market structure bill that would expand the CFTC’s role and clarify how digital assets are classified and regulated. The critics believe there’s a new section in the amended text they’re describing as a ‘Gensler-era provision.”

‘The Gensler-era provisions’ would eliminate exemptions for previously issued tokens, instead giving the U.S. SEC sweeping authority to determine whether each token qualifies as a security. Critics say the approach reintroduces uncertainty about what the bill is meant to resolve.

CLARITY Act undergoes markup today

🚨NEW: Ahead of today’s CLARITY Act markup in @FinancialCmte and @HouseAgGOP, some industry players I’ve been speaking to are raising concerns over a new section in the amended text they’re describing as a “Gensler-era provision.”

The change would eliminate exemptions for…

— Eleanor Terrett (@EleanorTerrett) June 10, 2025

Committee Chairman French Hill introduced the CLARITY Act of H.R. 3633 on May 30, which is currently continuing its markup of the Act at its June 10, 2025, Full Committee Markup hearing. The bill is expected to expand the CFTC’s authority over cryptocurrency markets by establishing a new regulated framework for digital commodities. 

Hill stated at today’s markup that the Committee held a thoughtful and constructive hearing on digital asset market structure legislation, the CLARITY Act. According to him, the crypto industry has been plagued by regulatory uncertainty, and the absence of clear rules has stifled innovation, discouraged entrepreneurs, and confused investors.

“Digital assets and blockchain technology have the potential to fundamentally reshape how we interact with the internet. These innovations can unlock opportunity, empower individuals, and expand access to the financial system, but we need a regulatory framework in place to experience these benefits.”

–French Hill, Chairman of the House Financial Services Committee.

In a notice released ahead of the hearing, Hill also introduced an amendment to the CLARITY Act that focuses on the treatment of certain non-controlling blockchain developers. According to the proposed amendment, certain blockchain developers or service providers would not be considered money transmitters or subject to their registration requirements.

The Digital Asset Market Clarity (CLARITY) Act has been partly shadowed by calls for provisions to stop Trump from potentially using the legislation to his personal benefit. Representative Bryan Steil, who chairs the digital asset committee, said his Republican colleagues refused to acknowledge President Trump’s crypto corruption allegations, which he believes limit their efforts to pass the bill.

Representative Maxine Waters, a member of the House Financial Services Committee, has not mentioned anything to suggest that she and many other Democrats will vote for the legislation if the time comes. Waters had organized a Minority Day hearing on Friday to address allegations of corruption through the U.S. President Donald Trump’s ties to the crypto industry.

The California lawmaker acknowledged that no provision within the CLARITY Act addresses the crimes she laid out. Before Trump’s dinner to reward his memecoin holders on May 22, Waters unveiled a separate bill to block the president, vice president, members of Congress, and their families from engaging with digital assets. 

She also believes that the bill only legitimizes the alleged crimes by Trump. Democratic Representative Ritchie Torres, who has previously advocated for legislation impacting the crypto industry, has suggested he will support the market structure bill.

Tuesday’s markup hearing will include crucial discussion and vote for amendments to the bill before potentially sending the bill to the full chamber. Lawmakers are also expected to vote in the Senate soon on the GENIUS Act – a bill to regulate the payment of stablecoins.

Vance advocates for the advancement of stablecoin legislation

Vice President JD Vance, on May 28, called for eliminating regulatory barriers to the crypto sector, acknowledging the end of Operation Chokepoint 2.0. He also highlighted the need to pass stablecoin legislation that fosters innovation while providing legal clarity. 

Vance also supported the comprehensive market structure bill to define the regulatory framework for other digital assets. He reaffirmed the administration’s commitment to advancing pro-crypto policies and urged the industry to continue pushing for legislative action.

Coinbase Chief Legal Officer Paul Grewal believes that the stablecoin legislation has made incredible progress because there’s bipartisan consensus that it’s in the U.S.’s interest to have sensible rules for stablecoins. Grewal also said the market structure bill is equally important for long-term stability and growth.

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