What’s Congress Really Hiding in the CLARITY Act?

The US CLARITY Act just vaulted through two powerful House committees — Agriculture (47-6) and Financial Services (32-19) in a rare bipartisan sprint that’s set the entire crypto industry abuzz. But while headlines tout “clarity,” many are asking: what’s really inside this bill, and what could it mean for the future of digital assets in America? 🚨 “The CLARITY Act just passed out of the @HouseAgGOP with a vote of 47-6 following a nearly 3-hour markup. They’re just starting on the markup now in @FinancialCmte.” — Eleanor Terrett (@EleanorTerrett), June 10, 2025 What’s Actually in the CLARITY Act? At its core, the CLARITY Act is Congress’s boldest attempt yet to draw clear lines between the SEC and CFTC, ending years of regulatory confusion that left crypto projects and investors guessing. The bill: Assigns the CFTC primary oversight over digital commodities (think: Bitcoin, Ethereum), requiring exchanges to register and follow anti-fraud, custody, and segregation rules. Leaves the SEC in charge of tokens sold as part of investment contracts, but creates a new “Certification of Decentralization” process — if a blockchain is decentralized enough, its token could be reclassified as a commodity. Sets up Digital Commodity Exchanges (DCEXs) under CFTC oversight, with strict registration and operational standards. Excludes stablecoins from its scope, reserving them for separate legislation, while reinforcing anti-money laundering (AML) obligations. But the latest mark-up added a twist. A new “Gensler-era” provision gives the SEC sweeping power to re-examine and potentially reclassify tokens as securities — even those already in circulation. Industry insiders warn this could reintroduce regulatory uncertainty, echoing past SEC actions on Ethereum and Ripple. The section removes exemptions for previously issued tokens, raising fears of retroactive enforcement. “Ahead of today’s CLARITY Act markup… 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.’” — Eleanor Terrett (@EleanorTerrett), June 10, 2025 Not All Bad News: DeFi & Developer Protections There’s good news for builders: the bill now includes the Blockchain Regulatory Certainty Act (BRCA), which shields developers of non-custodial blockchain infrastructure from being treated as financial intermediaries. Eight major crypto firms, including Uniswap, have openly supported this addition, calling it a win for US innovation. Both committees must now merge their amendments into a single version before the full House can vote — a process that could bring more changes. Meanwhile, the Senate is preparing its own version, with Senator Cynthia Lummis promising a bipartisan, bicameral approach that closely mirrors the House bill. The Senate is also nearing a vote on the GENIUS Act, a stablecoin bill that could pass even sooner. The bill draws inevitable comparisons with the EU’s MiCA regime, which sets strict, unified rules for crypto assets, stablecoins, and service providers across Europe. While MiCA emphasizes transparency, stability, and consumer protection, the CLARITY Act focuses more on jurisdictional clarity and market structure — though critics worry it may leave too many tokens unregulated or at the mercy of agency discretion. The Lobbying Battle & Industry Reaction Crypto lobbyists and traditional finance groups are working overtime to shape the final bill. Some Democrats warn that the current draft could leave consumers exposed, while Republicans argue it will finally unleash US innovation and keep America competitive. The inclusion of DeFi protections is seen as a win, but the SEC’s expanded powers remain a flashpoint. “Blockchain technology and digital assets are reshaping the future of American finance… Congress has a historic opportunity to provide the clear regulatory framework needed to unlock this innovation.” — Rep. French Hill, Chairman, House Financial Services Committee Bottom Line: The CLARITY Act’s bipartisan momentum is undeniable, but the details are still in flux. With the Senate preparing its own version and industry voices demanding changes, the next few weeks could decide whether the US finally gets the crypto rules it needs—or just more questions.

Source: Coinpaper