CLARITY Act Provision Raises Industry Concerns On SEC Power

 
Rajpalsinh Parmar
Written By 
Rajpalsinh Parmar
June 10, 2025

Ahead of today’s markup of the CLARITY Act in the House Financial Services and Agriculture Committees on June 10, crypto industry leaders are sounding the alarm over a last-minute amendment. 

According to a post on X by popular crypto journalist Eleanor Terrett, crypto leaders think that new amendments in the CLARITY Act grant the SEC authority to determine, on a case-by-case basis, whether previously exempted tokens qualify as a security. 

Critics raised questions about the change, which some are calling a “Gensler-era provision.” It reintroduces regulatory uncertainty, which the bill was designed to resolve. 

What is the CLARITY ACT?

The CLARITY Act is a proposed U.S. bill to introduce clearer regulatory guidelines for cryptocurrencies and other digital assets. Its main purpose is to address the long-standing uncertainty over whether a token should be classified as a security or commodity.

Key Points of the CLARITY Act:

  1. Exempts some tokens from SEC regulation: If a blockchain network is fully and sufficiently decentralized, its tokens would no longer be treated as securities. This would reduce the SEC’s oversight.
  2. Creates a Path for Compliance: Projects could file disclosures with the SEC to confirm they meet decentralization criteria. 
  3. Limits the SEC’s Authority: Prevents the SEC from retroactively targeting tokens that were initially deemed compliant.
  4. Aims to Boost Innovation: By reducing legal ambiguity, the bill aims to encourage blockchain development in the U.S.

Chairman Thompson said earlier, “Regulatory clarity is long overdue in digital asset markets. Today marks the first step in advancing a comprehensive framework that protects consumers, fosters innovation, and closes regulatory gaps in oversight.  It will give digital asset developers and s the certainty they need and have asked for. 

“ of the Committee on Agriculture are proud to work with of the Financial Services Committee, led by Chairman Hill and Chairman Steil. And I am grateful to Chairman Dusty Johnson, whose bipartisan leadership has been instrumental every step of the way,” he added further. 

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Rajpalsinh Parmar
Written by Rajpalsinh Parmar

Rajpalsinh is a crypto journalist with over three years of experience and is currently working with CryptoNewsZ. Throughout his journey, he has honed skills like content optimization and has developed expertise in blockchain platforms, crypto trading bots, and hackathon news and events. He has also written for TheCryptoTimes, where his ability to simplify complex crypto topics makes his articles accessible to a wide audience. ionate about the ever-evolving crypto space, he stays updated on industry trends to provide well-researched insights. Outside of work, gaming serves as his stress buster, helping him stay focused and refreshed for his next big story. He is always eager to explore new blockchain innovations and their potential impact on the global financial ecosystem.