House Prepares CLARITY Act Markup as Crypto Industry Seeks Key Amendments
Lawmakers face pressure from all sides as Democrats target Trump ties and crypto firms push back on bill language
Welcome to the Friday edition of the Crypto In America newsletter!
What you’ll read: House sets CLARITY Act markup while industry pushes back on TradFi ‘favoritism’, and Democrats spotlight Trump’s crypto ties in a special hearing. Plus, a look at the week’s biggest news stories.
As the GENIUS Act faces procedural hurdles that could delay a final Senate vote until late next week or beyond, lawmakers and industry stakeholders are turning their attention to the next major policy priority: the CLARITY Act, the House’s digital asset market structure bill.
After two committee hearings this week in House Financial Services and House Agriculture, a markup of the CLARITY Act is scheduled for Tuesday at 10:00 AM ET.
Crypto Lobby Pushes for DeFi Protections
In a notable display of unity, eight of the leading crypto policy organizations in Washington, D.C. issued a joint statement Thursday urging Congress to include the Blockchain Regulatory Certainty Act (BRCA) in the CLARITY Act.
Originally introduced by Rep. Tom Emmer (R-MN) and now backed by Rep. Ritchie Torres (D-NY), the BRCA would protect software developers and infrastructure providers who do not custody user funds from being treated as traditional financial intermediaries.
“It’s critically important that we don’t treat open-source developers like traditional financial institutions,” one policy lead told Crypto in America. “The BRCA draws that line clearly and protects innovation.”
The signatories include: the DeFi Education Fund, Coin Center, Solana Policy Institute, Digital Chamber, Blockchain Association, Crypto Council for Innovation, Bitcoin Policy Institute, and Paradigm.
Industry Warns of TradFi Advantage
At the same time, some crypto-native firms are raising concerns about language in the bill that they say favors traditional financial institutions over digital asset companies.
At issue: Under the current text, SEC-registered firms like Charles Schwab and other major Wall Street players would be able to immediately offer services in digital commodities upon the bill’s passage, while crypto-native companies could face a less defined and potentially more burdensome registration process with the Commodity Futures Trading Commission.
One executive at a major crypto exchange, who spoke on condition of anonymity, told Crypto in America there’s growing concern the bill could create an uneven playing field between TradFi and crypto-native firms.
Some GOP aides are pushing back on that assertion, calling the concerns “unfounded.”
“The Committee is continuing to solicit feedback, and we look forward to a successful markup next Tuesday,” said a spokesperson for Rep. French Hill (R-AR), Chairman of the House Financial Services Committee.
Democrats to Hold Minority Day Hearing on Trump and Crypto
Meanwhile, House Financial Services Committee Democrats, led by Ranking Member Maxine Waters (D-CA), will hold a Minority Day Hearing at 9:00 AM ET to further examine what they describe as President Trump’s “crypto crimes” and to assess the broader risks posed by the CLARITY Act.
The hearing is intended as a follow-up to the two committee sessions held earlier this week and will include additional witnesses including:
Amanda Fischer, Policy Director and COO, Better Markets and former Chief of Staff to Gary Gensler
Bart Naylor, Financial Policy Advocate/Economist, Public Citizen
Carole House, Senior Fellow, Atlantic Council, GeoEconomics Center
Hilary Allen, Professor of Law, American University Washington College of Law
Timothy Massad, Research Fellow and Director of Digital Assets Policy Project of the Mossavar-Rahmani Center for Business and Government, Kennedy School of Government at Harvard University; Former CFTC Chairman
Topics of focus will include:
The Stop TRUMP in Crypto Act (H.R. 3573)
National security and investor protection implications
Regulatory concerns surrounding the CLARITY Act (H.R. 3633)
“This hearing will give the American public a fuller picture of the implications of Trump’s crypto-related misconduct and examine the potential consequences of the market structure bill, which may be marked up by next week,” a hearing notice states.
Weekly Recap
ICYMI. Here are some of the biggest news stories this week from the intersection of Washington and Web3:
Circle officially debuted on the New York Stock Exchange with its stock surging as much as 200% on the first day of trading on Thursday. At market close, shares settled at $83.23, up 168% from their IPO price of $31.
MoonPay officially secured its BitLicense and Money Transmitter Licenses from the New York State Department of Financial Services, enabling the company to serve customers in all 50 states.
World Liberty Financial, backed by President Trump’s sons, reportedly sent a cease-and-desist letter to Fight Fight Fight (the company behind the $TRUMP meme coin) and crypto firm Magic Eden for launching an unauthorized Trump-themed crypto wallet. Eric, Don Jr., and Barron Trump clarified earlier this week that the Trump Organization is not involved with the Magic Eden project, and that an official wallet will be launched soon by World Liberty.
President Trump's social media platform Truth Social filed an S-1 application with the Securities and Exchange Commission for a Bitcoin spot ETF that would list on the New York Stock Exchange.
The Senate confirmed Michelle Bowman as the Federal Reserve’s new Vice Chair for Supervision in a 48–46 vote, replacing Michael Barr as the Fed’s top banking regulator for a four-year term.
The Senate Agriculture Committee scheduled a nomination hearing for CFTC Chair nominee Brian Quintenz on Tuesday at 3:00 PM EST.
Anthony 'The Mooch' Scaramucci Joins Crypto In America
This week, Anthony Scaramucci joins the show to drop all of his hot takes.
From navigating crypto politics and regulation, to his journey from TradFi to Bitcoin, to his involvement with FTX and surprising support of Trump’s impact on the industry — Anthony breaks down the current state of crypto in America.
Watch and listen on all platforms now.
Remember, new editions of the Crypto In America newsletter drop every Monday, Wednesday and Friday at 7AM EST.
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have you seen my latest article btw? Im talking about the current market crash