CLARITY Act Revision Sparks Controversy Over SEC Powers Impacting Ethereum and Digital Tokens

On June 10, the U.S. House Financial Services Committee and Agriculture Committee advanced discussions on the CLARITY Act, also known as the Digital Asset Market Clarity Act, as reported by crypto journalist Eleanor Terrett via COINOTAG News. The latest draft introduces a contentious provision, dubbed the “Gensler-era clause”, which eliminates exemptions for existing tokens and empowers the SEC to evaluate each digital asset individually to determine its classification as a security. This shift has sparked concern among industry experts, who argue it reinstates regulatory ambiguity that the legislation aimed to resolve. The term “Gensler era” references the period under SEC Chair Gary Gensler, characterized by rigorous enforcement and a preference for case-by-case regulatory actions over explicit guidelines. Market participants are closely monitoring these developments, recognizing the potential impact on token issuance and compliance strategies within the evolving crypto regulatory landscape.