Quick Summary
An important amendment of the CLARITY Act would enable blockchain developers to be relieved of money transmitter regulations.
The bill invites open-source innovation as controls are reduced to restrictive policies on developers, who are non-controlling.
Introduced by Rep. French Hill with a previous bill based on Rep. Tom Emmer.
When the House Financial Services Committee holds a mark up hearing on the bill in the near future, this will play a key role in the future of the bill.
According to Paul Grewal, CLO at Coinbase, a market structure bill is vital to both, long-term stability and growth.
There is a witness to political tensions there, such as the support of Rep. Ritchie Torres and the opposition of Rep. Waters.
What is CLARITY Act?
The suggested bill is called the CLARITY Act (Digital Asset Market Clarity Act of 2025), a proposal designed to establish more pertinent regulatory limits within the U.S crypto sector.
An important amendment known as Congressional Amendment 128 proposed by Rep. French Hill, Chair of the United States House Committee on Financial Services, aims to provide a safe harbor for non-controlling blockchain developers who will no longer be viewed as a money transmitter.
Part of this change is informed by a new bill called the Blockchain Regulatory Certainty Act introduced by Rep. Tom Emmer that seeks to defend the realities of builders to make open-source blockchain infrastructure without necessarily being the network operator.
The Relevance of the Amendment
The amendment solves one of the greatest fears of blockchain developers and startups, that is, compliance risk.
The bill: By excluding non-controlling developers of virtual currencies/exempting them of the licensing and registration requirement usually required by money transmitters, the bill:
- Promotes open-source innovation
- Less ambiguity of laws to tech builders
- Makes work and roles clear in the blockchain ecosystem
This is a groundbreaking move, which puts developers on the line, without punishing creativity.
Outlooks of the Industry and the Lawmaker
Coinbase Chief Legal Officer Paul Grewal said regulation was a priority:
Not a single provision within [the CLARITY Act] addresses the crimes I’ve laid out. This bill only legitimizes it.
Bipartisan support has its traction with the same party divides, specifically with the Democrat Rep. Ritchie Torres, one of the crypto advocates in Congress that co-sponsors both the CLARITY Act and the Blockchain Regulatory Certainty Act.
The GENIUS Act and Stablecoins as Considered by Senate
Whereas the House is discussing the CLARITY Act, the Senate is passing the GENIUS Act, which is supposed to control payment stablecoins.
This act, sponsored by the Senate Majority Leader John Thune, is also likely to be passed in the near future and pave way towards comprehensive crypto regulations in the U.S.
What both bills have in common is the architectural separation that can better protect investors, at the same time increasing the innovation in the market.
The Challenges and Political Tensions
Challenges and political tensions were the main processes of the war.
However, although there is an increasing level of impetus behind the CLARITY Act, there are still strong objections to the act among Democratic leaders such as Rep. Maxine Waters, who has questioned the benefits of passing this bill in a recent hearing:
“A market structure bill is equally important for long-term stability and growth.”
Through her remarks, she has indicated that she is worried that crypto might be or has been used in financial crime and political corruption, such as in the case of the former President Donald Trump.
What Next to Crypto Laws?
The markup hearing to be held by the House Financial Services Committee will be important.
Once it passes, the bill will go directly to a full House vote, possibly transforming the activity of blockchain developers and platforms in the U.S.
To developers, startups, and crypto institutions, this will offer them something that they have been longing to have in the industry: clarity on regulations.