Over 100 Crypto Firms Push for US Senate to Advance Market Structure Legislation

A collective of US-based cryptocurrency companies and trade associations has urged the Senate Banking Committee to proceed with the markup of the Clarity Act, a bill aimed at establishing a federal framework for cryptocurrency markets. In a letter addressed to Chairman Tim Scott, Ranking Member Elizabeth Warren, Subcommittee Chairwoman Cynthia Lummis, and Ranking Member Ruben Gallego, the group emphasized that government agencies alone cannot provide stable regulations. The letter highlights the risk of reverting to "enforcement-based regulation," referencing a series of court cases initiated by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) during President Joe Biden's term. The effort has garnered support from over 100 signatories, including prominent companies such as Coinbase, Circle Internet, Kraken, Ripple, Andreessen Horowitz, Paradigm, Consensys, Anchorage Digital, and Galaxy Digital, as well as developer groups, state blockchain associations, and university chapters of Stand With Crypto. The coalition has identified six key priorities for lawmakers to address, including preserving consumer rewards associated with payment stablecoins, defining the oversight roles of the SEC and CFTC, and protecting developers of non-custodial tools. Additionally, the group has called for simplified disclosure rules and a federal standard to avoid a patchwork of state laws. The coalition warned that the absence of US legislation may drive investment, jobs, and development overseas, citing the European Union's comprehensive cryptocurrency framework as an example. According to Ji Hun Kim, CEO of the Crypto Council for Innovation, "The United States requires clear, comprehensive regulations for digital asset markets, as it is a global competition to establish the highest standards." Kim further stated, "The Senate Banking Committee can build upon years of bipartisan efforts and the success of the GENIUS Act by advancing legislation that provides regulatory clarity, robust consumer protection, and strong safeguards for developers. Proceeding with the markup will bring us closer to establishing durable rules that enable the US to set the global standard for digital asset markets." However, the Committee has yet to schedule a markup.