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CRYPTO INDUSTRY LEADERS RAISE CONCERNS OVER CLARITY ACT’S ‘GENSLER-ERA’ AMENDMENT AHEAD OF MARKUP
Crypto industry players are raising red flags over a new section added to the Digital Asset Market Clarity (CLARITY) Act of 2025 ahead of today’s markup session, warning that it closely resembles the aggressive regulatory posture of the prior administration.
Crypto Industry Players Raise the Alarm
On Tuesday, crypto stakeholders voiced their concerns over the newly amended text of the CLARITY Act. According to journalist Eleanor Terret, industry leaders have described the added provision as a “Gensler-era” measure, reviving fears about unclear and burdensome oversight.
The legislation, introduced on May 29 by Chairman of the House Financial Services Committee French Hill, is intended to build a comprehensive regulatory framework for digital assets in the U.S., promising the clarity and protection long sought by the crypto industry.
The bipartisan bill aims to:
- Protect consumers by requiring developers and customer-facing companies to provide essential disclosures.
- Safeguard client assets by mandating separation of customer and corporate funds.
- Support innovation, offering developers a regulated path to raise capital under government oversight.
“Our bill brings long-overdue clarity to the digital asset ecosystem, prioritizes consumer protection and American innovation, and builds off our work in the 118th Congress,” Hill said in a statement last month.
However, Terret reported that the new amendment would “eliminate exemptions for previously issued tokens,” thereby giving the Securities and Exchange Commission (SEC) broad discretionary power to determine on a case-by-case basis whether each token constitutes a security.
Critics argue this move undermines the entire purpose of the bill, warning it may reintroduce regulatory uncertainty that the bill was initially designed to resolve. Some investors fear the amendment could enable a system of “winners and losers” determined by the SEC’s discretion.
Political Opposition Grows
The legislation has also drawn sharp criticism from Democrats. Some argue that it could create opportunities for former President Donald Trump to benefit financially through crypto-related ventures.
Rep. Maxine Waters (D-Calif.) was especially vocal, stating:
“This rushed, overly complicated bill will increase investor harm, which already runs rampant in today’s crypto market.”
She continued:
“Some of the riskiest activities are broadly exempted from the bill, leaving our constituents with no one to turn to when their money vanishes. The bill puts our national security at risk and contains no penalties for crypto criminals.”
Momentum Builds with the BRCA Inclusion
Despite the controversy, the bill gained momentum with the inclusion of the Blockchain Regulatory Certainty Act (BRCA), which provides legal protections for non-custodial software developers and infrastructure providers.
As reported by Bitcoinist, eight major crypto policy groups signed a joint statement urging Congress to add the BRCA to the CLARITY Act. The BRCA was reintroduced on May 21, 2025, by Rep. Tom Emmer (R-MN) and Rep. Ritchie Torres (D-NY).
On June 8, the revised version of the CLARITY Act incorporated the BRCA, clarifying that non-custodial, peer-to-peer developers should not be regulated as money transmitters. In a joint statement, the crypto policy groups said:
“This is a meaningful step toward protecting developers of non-custodial, peer-to-peer technologies while maintaining strong oversight of custodial financial institutions.”
They added that the updated bill reflects a balanced regulatory approach, building on FinCEN’s 2019 guidance.
Industry Support Persists Despite Concerns
Even with the inclusion of the controversial amendment, major crypto firms such as Coinbase remain supportive. The company issued a statement asserting:
“Bipartisan momentum is building. Lawmakers from both sides agree: it’s time to protect consumers and unlock American innovation with clear crypto legislation. As Congress prepares for a key vote to advance the CLARITY Act, the message is clear: vote YES.”
Next Steps for the CLARITY Act
As of the time of writing, the CLARITY Act passed the House Committee on Agriculture markup with a decisive 47–6 vote, following nearly three hours of debate. The bill will now move to the House Financial Services Committee for further review, as reported by Terret.
@ Newshounds News™
Source: Bitcoinist
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XRP LEDGER DEVS PLAN SIDECHAIN LAUNCH IN Q2 FOR ETHEREUM COMPATIBILITY
▪️ XRP Ledger plans to launch an EVM sidechain in Q2 2025 to gain Ethereum compatibility.
▪️ Ripple CTO David Schwartz announced the timeline at the Apex 2025 event in Singapore.
The XRP Ledger (XRPL) — a blockchain closely associated with cross-border payments company Ripple — is preparing to launch an Ethereum Virtual Machine (EVM) sidechain in the second quarter of 2025, in a significant move to bridge Ethereum smart contracts into its ecosystem.
This EVM-compatible sidechain aims to enable Ethereum-based smart contract functionality while preserving XRPL’s signature low-cost and high-speed transaction model.
Ripple’s Chief Technology Officer David Schwartz formally announced the upcoming launch during the ongoing Apex 2025 event in Singapore, according to Peersyst, one of the project’s principal development partners.
What the Sidechain Will Do
The EVM sidechain is a parallel blockchain that will run alongside the XRP Ledger. It is being developed by contributors Ripple and Peersyst, and is built using the evmOS software stack.
▪️ The sidechain is already live on testnet, serving as a trial environment to ensure functionality and performance.
▪️ A mainnet launch is expected to follow in Q2 2025 after further testing and the onboarding of validator partners.
Why Ethereum Compatibility Matters
While XRPL has its own support for native smart contracts, it does not currently support the Ethereum Virtual Machine (EVM) — the dominant development environment for decentralized applications (dApps) on Ethereum.
This limitation has meant that Ethereum developers could not easily port their applications to the XRP Ledger. The EVM sidechain solves that by bringing Ethereum-style programmability directly to the XRPL ecosystem.
Other projects like Flare Network also provide EVM-compatible smart contract capabilities that integrate with XRPL, but this new native sidechain represents a first-party, in-house solution from Ripple contributors.
Bridge Connectivity: Powered by Axelar
The EVM sidechain will connect to the XRP Ledger mainnet through a bridge mechanism. Specifically, Axelar has been selected as the exclusive bridge provider for the sidechain.
This bridge will enable transfer of assets, such as wrapped XRP, which will act as the native gas token on the sidechain.
This initiative represents a strategic leap toward greater interoperability between XRPL and the wider Ethereum ecosystem, expanding XRPL’s reach and relevance in the world of decentralized finance (DeFi) and smart contract-based applications.
@ Newshounds News™
Source: Source: The Block
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🇷🇺 BRICS: Oil Giant Eyes Chinese Yuan Bonds, Ignores US Dollar Assets
Kazakhstan’s KazMunayGas makes landmark shift toward de-dollarization
In a major financial pivot, Kazakhstan’s state oil and gas giant KazMunayGas is preparing to ditch US dollar bonds in favor of Chinese yuan-denominated debt, including dim sum and panda bonds.
Why the shift?
Yuan-based bonds offer cheaper debt options compared to US Treasuries — aligning with BRICS’ push to reduce USD dependence.
“We looked at all options… Currently, there is a possibility to sell dim sum and panda bonds,” said CEO Askhat Khassenov to Bloomberg. “They offer rather good conditions.”
The move follows growing BRICS influence encouraging global firms to explore non-dollar financial instruments.
- Dim sum bonds = yuan bonds traded offshore
- Panda bonds = yuan bonds issued by foreign entities inside China
This marks the first time KazMunayGas sidelines US dollar assets — and may signal a larger trend among other BRICS-aligned oil firms.
@ Newshounds News™
Source: Watcher Guru
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