Crypto Sector Voices Concerns Over New Legislative Amendments
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Concerns Arise Among Crypto Industry Stakeholders
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Recent developments have caused a stir within the cryptocurrency industry. On Tuesday, key industry figures expressed their apprehension regarding a newly added section to the Digital Asset Market Clarity (CLARITY) Act of 2025. This amendment was introduced prior to a significant legislative session, and some experts liken it to the regulatory strategies of past administrations. Noted journalist Eleanor Terret highlighted these concerns, reporting that some leaders have termed the new provision a “Gensler-era directive.”
The CLARITY Act, initially presented by French Hill, Chairman of the House Financial Services Committee, on May 29, aims to establish a comprehensive regulatory framework for digital assets in the United States. This legislation is designed to deliver much-needed clarity and protection to the burgeoning crypto market. The bipartisan nature of the bill underscores its intent to safeguard consumers by mandating that developers and customer-facing entities provide essential disclosures while ensuring the separation of company funds from customer assets.
Beyond consumer protection, the act is poised to bolster the growth of crypto initiatives by outlining a clear path for developers to secure funding under the vigilant eye of U.S. regulatory bodies. “Our legislation brings overdue clarity to the digital asset ecosystem, prioritizing consumer safety and fostering American innovation,” Hill remarked during a recent discussion.
Nevertheless, Terret has reported that the latest amendment seeks to revoke exemptions for tokens previously issued, granting the Securities and Exchange Commission (SEC) expansive authority to evaluate, on an individual basis, whether each token qualifies as a security. Critics argue that this change may reignite the very uncertainties the bill seeks to dispel. Investors in the crypto community have voiced their concerns, suggesting that the amendment might lead to a scenario where certain players are favored over others.
It is also important to acknowledge the criticisms the CLARITY Act has faced from Democratic lawmakers. Some have expressed apprehensions that the bill could enable former President Donald Trump to profit from his crypto ventures. Democratic Representative Maxine Waters voiced her objections last week, stating that the expedited and complex nature of the bill could exacerbate investor vulnerabilities prevalent in today’s crypto markets. She warned that “some of the most hazardous activities are broadly exempted, leaving constituents without recourse when funds disappear.” Waters further emphasized the potential national security risks and the bill’s lack of penalties for crypto-related crimes.
Continued Momentum for the CLARITY Act
In parallel with these developments, industry leaders and U.S. lawmakers have advocated for the inclusion of the Blockchain Regulatory Certainty Act (BRCA) within the market structure legislation. This inclusion aims to provide a safe harbor for software developers and infrastructure providers. According to Bitcoinist, several crypto policy organizations have jointly urged U.S. Congress leaders to incorporate the BRCA, which was initially introduced in 2023, into the CLARITY Act. Republican Representative Tom Emmer reintroduced this bill on May 21, 2025, with Democratic Representative Ritchie Torres as a co-sponsor.
The latest iteration of the CLARITY Act, amended on June 8, integrates clarity for non-custodial developers by adding the BRCA. In a joint statement, the crypto advocacy groups highlighted that this represents a significant milestone in protecting developers of non-custodial, peer-to-peer technologies, while maintaining rigorous oversight of custodial financial institutions. The updated legislation seeks to strike a balance, building on FinCEN’s 2019 guidelines, to clarify that developers and infrastructure providers not controlling customer funds should not be regulated as money transmitters.
Despite concerns surrounding the “Gensler-era” amendment, major industry players like crypto exchange Coinbase have noted the growing bipartisan momentum. They assert that lawmakers from both parties recognize the necessity of safeguarding consumers and promoting American innovation through transparent crypto legislation. As Congress approaches a pivotal vote on advancing the CLARITY Act, the message is clear: a resounding ‘yes’ is being advocated.
As of the latest update, the legislation successfully passed the House Committee on Agriculture markup with a 47-6 vote following an extensive debate. The bill now awaits further review by the House Financial Services Committee, as reported by Terret.
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