U.S. Congress Advances Crypto Regulation with Proposed Amendments to CLARITY Act

Introduction

The U.S. cryptocurrency industry is on the cusp of significant regulatory change as Congress prepares to address long-standing uncertainties in digital asset oversight. On June 10, 2025, the House Financial Services Committee (HFSC) is set to hold a markup hearing for the Digital Asset Market Clarity (CLARITY) Act, a bill aimed at establishing a clear regulatory framework for cryptocurrencies. Lawmakers, including Representative French Hill, have proposed amendments to incorporate protections for blockchain developers, drawing from the Blockchain Regulatory Certainty Act. Meanwhile, the Senate is advancing the GENIUS Act to regulate stablecoins, signaling a broader push for crypto-friendly policies. Despite bipartisan efforts, concerns over potential conflicts of interest tied to President Donald Trump’s crypto ventures are complicating the legislative process.

CLARITY Act Nears Critical Markup

The CLARITY Act, a cornerstone of U.S. crypto regulation efforts, seeks to delineate the roles of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) in overseeing digital assets. On June 10, the HFSC will review the bill during a markup hearing, a pivotal step toward its passage. Representative French Hill has introduced amendments to integrate provisions from the Blockchain Regulatory Certainty Act, which clarifies that blockchain developers and service providers not holding consumer funds are not classified as money transmitters. This change aims to foster innovation by reducing regulatory burdens on developers, a move supported by crypto advocacy groups like the Blockchain Association.

Bipartisan Support Meets Political Pushback

The push for regulatory clarity has garnered bipartisan backing, with Representatives Tom Emmer (Republican) and Ritchie Torres (Democrat) co-sponsoring the Blockchain Regulatory Certainty Act provisions. Torres, a known crypto advocate, has emphasized the need for thoughtful regulation to support digital asset growth. However, Democratic lawmakers, including Representative Maxine Waters, have raised concerns about President Trump’s ties to World Liberty Financial and other crypto ventures, fearing the bill could enable personal profiteering. These objections have led some Democrats to threaten to block the CLARITY Act unless safeguards addressing these conflicts are included.

Stablecoin Regulation Gains Momentum

In parallel, the Senate is moving forward with the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which aims to regulate the $250 billion stablecoin market dominated by Tether (USDT) and Circle’s USDC. The bill mandates full backing, regular audits, and federal or state approval for stablecoin issuers, while restricting algorithmic stablecoins. Senate Majority Leader John Thune has expressed urgency to pass the bill, but Democratic senators, including Chuck Schumer, have voiced concerns about insufficient anti-money laundering provisions and Trump’s crypto affiliations. Despite these hurdles, crypto lobbying groups like the Digital Chamber are pushing for swift passage to maintain legislative momentum.

Implications for the Crypto Industry

The proposed bills could transform the U.S. crypto landscape by providing long-sought regulatory clarity. The CLARITY Act’s focus on distinguishing CFTC and SEC jurisdictions aims to end the “regulation-by-enforcement” approach criticized by industry leaders. Meanwhile, the GENIUS Act could bolster confidence in stablecoins, encouraging their adoption in mainstream finance. However, political divisions and concerns over Trump’s influence risk delaying progress. The CFTC’s evolving role, underscored by nominee Brian Quintenz’s pro-crypto stance and his $3.4 million in crypto-related assets, suggests a potential shift toward lighter regulation, which could benefit innovation but raise oversight concerns.

Conclusion

As the U.S. Congress debates the CLARITY and GENIUS Acts, the cryptocurrency industry stands at a crossroads. The proposed amendments to protect blockchain developers and regulate stablecoins reflect a commitment to fostering innovation while addressing market risks. Yet, political tensions, particularly around Trump’s crypto ties, highlight the challenges of achieving consensus. For investors and industry players, these bills represent a critical opportunity to establish a predictable regulatory environment, but their success hinges on navigating partisan divides and ensuring robust safeguards. As the June 10 markup hearing approaches, the crypto community watches closely, hopeful for a framework that balances growth with accountability.