Markup Hearing on Cryptocurrency Legislation
On Tuesday, members of the House Financial Services Committee are slated to convene for a markup hearing aimed at reviewing a proposed bill addressing the structure of the cryptocurrency market. This meeting will consider enhancements that may offer added safeguards for developers working with blockchain technology.
Proposed Amendments and Key Legislation
The committee chair, French Hill, has put forth an amendment to the proposed Digital Asset Market Clarity Act of 2025—often referred to as the CLARITY Act—which seeks to delineate the treatment of specific non-controlling blockchain developers.
The amendment stipulates that under this new regulatory framework, certain blockchain developers or service providers would not fall under the category of money transmitters, thus exempting them from the associated registration prerequisites. This initiative appears to draw inspiration from the Blockchain Regulatory Certainty Act, a legislative effort led by Representative Tom Emmer along with a bipartisan coalition earlier this year in May. Organizations advocating for cryptocurrency, such as the Blockchain Association, have urged legislators to merge the objectives of both legislative efforts.
Discussions and Future Considerations
During the markup session, crucial discussions and votes will be held regarding potential adjustments to the CLARITY Act prior to its advancement to the larger congressional assembly. Concurrently, in the Senate, deliberations on the GENIUS Act—legislation aimed at regulating payment stablecoins—are also expected to take place shortly, with Senate Majority Leader John Thune indicating a desire to expedite the process and finalize the bill within the week.
Industry Perspectives and Bipartisan Support
In a recent commentary, Coinbase’s Chief Legal Officer, Paul Grewal, expressed optimism about the momentum surrounding stablecoin legislation, noting a strong bipartisan agreement on the necessity of effective regulatory frameworks. He also emphasized the equal importance of a well-structured market law for long-term market stability and growth.
Challenges Ahead
However, the outlook on bipartisan support for the CLARITY Act remains uncertain. Representative Maxine Waters, who ranks as the leading Democrat on the House committee, has not indicated any likelihood of support from herself or her party colleagues for this bill. Following a Minority Day hearing where she raised concerns regarding alleged corruption related to the previous Trump administration’s crypto affiliations, Waters asserted:
“Not a single provision within the CLARITY Act addresses the crimes I’ve laid out. In fact, this bill only legitimizes it.”
Despite these challenges, there is at least some indication of bipartisan support for the bill, notably from Representative Ritchie Torres, who is a co-sponsor for both the CLARITY Act and the Blockchain Regulatory Certainty Act. At the time of writing, attempts to reach Torres for further comment were unsuccessful.
