- ‘Gensler-era’ provisions face industry criticism.
- Potential impacts on Ethereum and altcoins.
- Concerns over regulatory clarity and innovation.
Crypto stakeholders expressed concerns on June 10, 2025, as “Gensler-era” provisions in the CLARITY Act drew criticism during a review by U.S. House Committees.
The revised CLARITY Act could significantly affect the crypto market, revoking token exemptions. Industry leaders fear reinstating “Gensler-era” enforcement could undermine U.S. competitiveness.
The CLARITY Act of 2025 is under intense scrutiny as U.S. House Committees assess its impact.
French Hill, the Committee Chairman, emphasized the need for a framework allowing digital assets to thrive. Revoking previous token exemptions has raised alarms about increased regulatory uncertainty in the crypto sector.
The provision specifically targets tokens previously granted exemptions, such as Ethereum and other altcoins, drawing comparisons to past SEC actions under Gary Gensler.
“Some industry players I’ve been speaking to are raising concerns over a new section in the amended text they’re describing as a ‘Gensler-era provision.'” [1] The removal of exemptions might push innovation and liquidity overseas due to heightened compliance costs in the U.S.
The immediate market response reflects concern over regulatory actions, potentially causing capital flight from U.S. markets. Some experts suggest these amendments could restrict growth and lead to businesses relocating to more accommodating jurisdictions.
The industry faces potential impacts on legal costs, compliance requirements, and market liquidity. Historical precedents like Ethereum’s security status and Ripple’s legal battles underscore concerns about increased SEC oversight. Observers advocate for clear and objective regulatory rules to maintain U.S. leadership in crypto innovation.
Projected outcomes include possible retreats of token projects from the U.S., reminiscent of previous periods of regulatory contention. As the CLARITY Act advances, the global crypto community watches closely, urging legislative bodies to balance enforcement with the promotion of innovation.
