The Crypto industry is raising concerns about the new CLARITY Act provisions, particularly those attributed to ‘Gensler-era’ regulations. These provisions could significantly affect both Ethereum and altcoin markets by revoking previously granted exemptions. Industry leaders worry that reinstating stricter enforcement could hinder U.S. competitiveness in the crypto sector. 2025’s CLARITY Act is under intense scrutiny as the U.S. House Committees assess its potential impact. French Hill, the Committee Chairman, emphasizes a need for regulatory framework that fosters innovation and growth within digital assets, but his team’s removal of previous exemptions have raised concerns about increased regulatory uncertainty in the crypto sector. The provision specifically targets previously exempt tokens such as Ethereum and other altcoins. This mirrors past SEC actions under Gary Gensler. Industry players believe this may push innovation and liquidity overseas due to heightened compliance costs in the U.S. Market response has been cautious, with some experts suggesting potential capital flight if regulatory uncertainty increases. Potential impacts on legal costs, compliance requirements, and market liquidity are being discussed. Historical precedents, such as Ethereum’s security classification and Ripple’s legal battles, illustrate concerns about increased SEC oversight. The industry is urging for clear and objective rules to maintain U.S. leadership in crypto innovation. As the CLARITY Act progresses, observers watch closely for potential moves by token projects to relocate to jurisdictions perceived as more regulatory-friendly.