Crypto Industry Pitches Market Structure Ideas to U.S. Senators in Hearing
The Senate Banking Committee held a hearing on Wednesday to discuss the regulation of digital asset markets in the U.S. Industry figures, including Ripple CEO Brad Garlinghouse, emphasized the need for regulatory clarity to foster innovation and protect good actors. Garlinghouse highlighted the challenges faced by Ripple due to the lack of clear rules. The hearing comes as two Senate committees—Banking and Agriculture—and the House of Representatives work on comprehensive crypto legislation.
The Senate Banking Committee is progressing faster, having successfully passed the GENIUS Act, a bipartisan bill establishing rules for U.S. stablecoin issuers. Committee Chairman Tim Scott expressed optimism that this momentum will continue as they tackle the broader market structure bill. He emphasized the importance of bipartisan cooperation and prioritizing principles over partisan politics. The House is expected to vote on the GENIUS Act next week, during its designated “Crypto Week,” where it will also consider its own Digital Asset Market Clarity Act.
Senator Elizabeth Warren, a prominent critic of the crypto industry, voiced concerns about potential conflicts of interest involving President Trump and the need to prevent presidential corruption. She expressed reservations about the House’s Clarity Act, arguing it could allow companies to evade SEC regulation by tokenizing assets. She specifically cited the possibility of companies like Meta or Tesla using blockchain to bypass SEC scrutiny.
The House’s Clarity Act, which designates the Commodity Futures Trading Commission as the primary regulator for U.S. digital assets, has already passed its relevant committees. However, former CFTC Chairman Tim Massad criticized the bill, calling it riddled with “regulatory arbitrage opportunities.”
The Senate Banking Committee has outlined its guidelines for market structure legislation, aiming to clearly define commodities and securities, while fostering innovation and investor protection. Chairman Scott stressed the need for effective rules rather than obstacles. President Trump’s August deadline for stablecoin and market structure bills adds urgency to the legislative process. While the Senate’s stablecoin bill might be passed quickly, the market structure bill is expected to take longer. Senator Scott set a September 30 deadline for the Senate to complete its work on this legislation.
