Leading Figures in the Cryptocurrency Sector Voice Apprehensions over CLARITY Act's Proposed Amendment during Preparations for Review, Linking It to regulation by Chairman Gensler.
The Digital Asset Market Clarity Act of 2025, colloquially known as H.R.3633, has stirred up quite a fuss in the crypto world. This legislative piece, introduced to the House of Representatives on May 29, 2025, aims to set up a robust regulatory framework for digital assets in the United States, tackling the lingering uncertainties in the jurisdiction of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) [1][2][3]. The Act is currently under scrutiny in the committee phase, with a hearing held on June 4, 2025, by the House Committee on Financial Services, signaling active deliberations on the bill [4].
The Alarm Bells Ring - The "Gensler-era provision"
On Tuesday, crypto insiders were set on edge by a new section in the Digital Asset Market Clarity Act, raised during the upcoming markup. Journalist Eleanor Terret unveiled that some industry leaders raised the red flag over the legislation's altered text, which has been reportedly labeled as reminiscent of the regulatory approach of the previous administration.
The bill, sponsored by Chairman of the House Financial Services Committee French Hill, aspires to offer long-awaited clarity and protection for the crypto industry in the US. The bipartisan legislation aims to mandate essential disclosures by developers and customer-interface firms, ensure the separation of companies' funds from those of their customers, and pave a clear path for crypto projects to secure funding under the oversight of the US watchdog [5].
Critics argue that the change would undo the resolution the bill was intended to achieve. Some crypto investors in the community echoed their concerns, suggesting that the change could lead to yet another round of "winners and losers." It's worth noting that the Digital Asset Market Clarity Act has faced criticism from Democrats, with some voicing concerns that the bill could allow US President Donald Trump to profit from its crypto ventures [6].
The Power Struggle: CLARITY Act vs BRCA
As reported by Bitcoinist, crypto industry players and US lawmakers have been vying for the inclusion of the Blockchain Regulatory Certainty Act (BRCA) in the market structure legislation. The BRCA, first introduced in 2023, seeks to offer a safe harbor for software developers and infrastructure providers. Eight crypto policy organizations urged US Congress leaders to include the BRCA in the Digital Asset Market Clarity Act in a joint statement last week [7]. The bill was reintroduced by Republican Representative Tom Emmer on May 21, 2025, with Democratic Representative Ritchie Torres as a co-sponsor.
The updated version of the Digital Asset Market Clarity Act included clarity for non-custodial developers by adding the BRCA to the bill on June 8 [7]. In a joint statement on Monday, the crypto groups advocating for the inclusion stated:
This marks a meaningful step towards safeguarding developers of non-custodial, peer-to-peer technologies, while maintaining strong oversight of custodial financial institutions.
The updated bill is a well-balanced compromise, building on FinCEN's 2019 guidance to clarify that non-controlling developers and infrastructure providers shouldn't be treated as money transmitters [8].
Despite the unrest around the "Gensler-era provision," influential players in the crypto universe like crypto exchange Coinbase affirmed that "Bipartisan momentum is building. Lawmakers from both sides agree: it's time to shield consumers and unlock American innovation with clear crypto legislation. As Congress prepares for a crucial vote to advance the Digital Asset Market Clarity Act, the message is loud and clear: vote YES."
At the time of writing, the legislation sailed through the House Committee on Agriculture markup with a 47-6 vote after a nearly 3-hour debate. Now, the bill is about to face the House Financial Services Committee markup, according to Terret's report.
- The concerns raised by crypto insiders stem from a contentious section in the Digital Asset Market Clarity Act, which, as journalist Eleanor Terret unveiled, draws comparisons to the regulatory approach of a previous administration, potentially undermining the bill's original intention of offering protection and clarity to the crypto industry.
- Amidst the ongoing debate surrounding the "Gensler-era provision," the Digital Asset Market Clarity Act saw a significant development when it included the Blockchain Regulatory Certainty Act (BRCA) on June 8, which aims to provide a safe haven for software developers and infrastructure providers, thereby striking a balance between safeguarding innovation and maintaining oversight for custodial financial institutions.
