- The U.S. House of Representatives lawmakers unanimously passed the CLARITY Act to provide clarity on crypto regulations.
- The bill provides certain roles to the SEC and CFTC and clarifies confusion in digital asset regulation.
- Crypto companies are seeking an addition of the Blockchain Regulatory Certainty Act to provide certainty to developers who do not have control over user funds.
The CLARITY Act (H.R. 3633) is moving through the legislative system in the United States, having passed two large committees of the House of Representatives by a solid bipartisan vote. The bill supports the Financial Services and Agriculture Committees and seeks to end regulatory uncertainty regarding digital assets by providing clear roles of the SEC and CFTC.
Legislators of both parties have pointed to the importance of a framework that would enable developers, institutional users, and retail users to be able to operate with some degree of certainty. The measure passed the Agriculture Committee by 47-6, highlighting unusual political consensus concerning crypto oversight.
According to representative Tom Emmer, the bill is a narrowly tailored solution, technical in nature to blockchain systems, and which promotes responsible innovation. The measure was additionally backed by Chairman French Hill, who stated that guardrails must accompany growth and investor protection as the pace of crypto adoption increases.
Tension Around New SEC Powers Raises Concerns
Although it has received general backing, one provision has raised eyebrows. One of the final changes, renamed to the “Gensler-era provision,” would allow the SEC to determine whether digital tokens are securities on a case-by-case basis- even when they had been cleared or were traded publicly. Opponents caution that the action would bring back the same uncertainty that the bill would address.
House Representative Angie Craig also recognized the concern but said the bill was imperfect yet timely. “If we don’t act, the space will grow without the consumer protections that retail investors need and deserve,” she said during the markup session.
The clause, some lawmakers and industry observers say, could give the SEC unprecedented power to confuse and control, as it were. They referred to the SEC enforcement action inconsistencies, including the position of the agency regarding Ethereum and its legal conflict with Ripple.
Crypto Firms Call for Developer Protections
With the CLARITY Act gaining momentum towards a vote in the full House, several crypto firms are now asking lawmakers to make it broader. Eight groups, such as Uniswap, Jump, and Coin Center, have urged the inclusion of the Blockchain Regulatory Certainty Act (BRCA).
The BRCA proposal is aimed at protecting developers who make blockchain tools but do not manage user funds. Proponents claim that, without such protection, innovation could be chilled because developers would run the legal risk of creating open-source systems.
The development of the CLARITY Act came after a procedural win in the Senate over the GENIUS Act; another bill focused on stablecoins regulation. The stablecoin legislation is on its way to debate and possible amendments this week, with a cloture vote already passed.
