U.S. lawmakers are moving closer to passing significant cryptocurrency legislation as members of the House Financial Services Committee prepare to mark up the Digital Asset Market Clarity Act of 2025 (CLARITY Act). A critical amendment introduced ahead of the hearing proposes exemptions for certain blockchain developers, marking a step forward

• The CLARITY Act amendment would exempt some blockchain developers from money transmitter laws, supporting open-source innovation.
• The House Financial Services Committee’s markup hearing could determine the bill’s legislative fate and signal broader momentum for crypto regulation.
• Political divisions remain, with opposition from Democratic leaders, though bipartisan support from figures like Ritchie Torres continues to build.

U.S. lawmakers are moving closer to passing significant cryptocurrency legislation as members of the House Financial Services Committee prepare to mark up the Digital Asset Market Clarity Act of 2025 (CLARITY Act). A critical amendment introduced ahead of the hearing proposes exemptions for certain blockchain developers, marking a step forward in defining regulatory boundaries in the crypto industry.

Committee chair French Hill spearheaded the amendment to include language clarifying that non-controlling blockchain developers and service providers would not be classified as money transmitters under U.S. law. They would, thus, be exempt from certain licensing and registration requirements, easing concerns for compliance and promoting better innovation in the sector.

The amendment is largely grafted from the let’s-say-there-was-a-Blockchain Regulatory Certainty Act, earlier introduced by Representative Tom Emmer and endorsed by a bipartisan  brokedown. The new provisions aim to protect developers who build open-source blockchain infrastructure without exerting control over the networks they help create.

Key Moment for Crypto Regulation

The Tuesday markup hearing is expected to include debate and a vote on these amendments, a necessary step before the bill can proceed to a full chamber vote in the House of Representatives. This whole thing could indeed have wide implications for developers, startups, and institutional players seeking clarity in the fast murky-changing digital asset space.

On the other hand, the Senate has its eyes trained on stablecoin considering the GENIUS Act, which intends to offer a regulatory framework for payment stablecoins. Senate Majority Leader John Thune has signaled he hopes to see the legislation finalized this week.

Supporters of the two bills believe the combined regulatory clarity will encourage responsible innovation and improve investor protections. “A market structure bill is equally important for long-term stability and growth,” said Paul Grewal, Chief Legal Officer at Coinbase, in a recent interview.

Bipartisan Hurdles and Political Skepticism

Despite optimism from industry leaders, challenges remain. The leading Democrat on the House Financial Services Committee, Rep. Maxine Waters, asserted her opposition to the CLARITY Act. During a Minority Day hearing, Waters stated that the bill ignored corruption concerns and didn’t address criminal concerns related to the crypto sector.

“Not a single provision within [the CLARITY Act] addresses the crimes I’ve laid out,” she said, referencing concerns about former President Donald Trump’s alleged ties to the industry. “This bill only legitimizes it.”

However, not all Democrats are opposed. Representative Torres, a known crypto advocate, co-sponsors both the CLARITY Act and the Blockchain Regulatory Certainty Act. Such continued bipartisan willingness might see the legislation stand a fair chance of progression through the House.

The coming days will be pivotal for the crypto industry in the U.S., as lawmakers debate how best to regulate a space that continues to grow in size, influence, and political significance.

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