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Cryptocurrency industry leaders, US lawmakers and experts are weighing in on a digital asset market structure bill set for a markup in the Senate Banking Committee on Thursday, and each group has voiced different views about whether to support or oppose certain aspects of the legislation.
In a Tuesday notice, Republicans on the Banking Committee, led by Senator Tim Scott, released a “myth vs. fact” sheet on the market structure bill, called the CLARITY Act. According to lawmakers in majority control of Congress, it was a “myth” that the legislation “was written by industry and serves industry interests,” claiming that it focused on investor protection.
“The bill has been shaped by years of bipartisan work, extensive engagement with regulators and law enforcement, and a focus on public-interest outcomes,” said Senate Republicans. “It strengthens national security, protects investors, and ensures that innovation occurs under clear, enforceable rules.”
Republicans face pushback from some companies in the crypto industry ahead of the markup, which was initially expected last year. However, concerns from lawmakers about ethics guardrails and decentralized finance, coupled with the longest US government shutdown in history, likely delayed consideration of the bill.
Related: Crypto market structure rulemaking could take years: Paradigm exec
In a research note released on Tuesday, Galaxy Digital expressed significant concerns about the bill potentially expanding the government’s ability to conduct surveillance and enforcement on crypto users. Other companies, including Coinbase, may still withdraw support for the bill unless provisions on stablecoin rewards are addressed.
An amended draft of the CLARITY Act released by lawmakers on Monday suggested a middle-ground approach by barring passive returns on stablecoin balances, but not outright banning rewards. It’s unclear whether the amended version will pass in committee or on the Senate floor, should it advance for a vote.
Coinbase chief policy officer Faryar Shirzad said in a Wednesday CNBC interview that the draft bill had a few provisions within it causing the company “enormous concern.” This included text that could block the US Securities and Exchange Commission (SEC) from allowing the “tokenization of equity markets.”
The Thursday markup will see how much support some of the amendments proposed by Senate Democrats and Republicans have and whether they advance to be officially added to the bill.
Senate Agriculture Committee to hold its own markup
While the Senate Banking Committee reviews amendments and potentially finalizes its draft of the market structure bill, Republicans in control of the Senate Agriculture Committee announced this week that they would release draft legislation on Jan. 21, with a markup hearing on Jan. 27.
Both committees are expected to address different aspects of the bill, including how US financial agencies like the SEC and Commodity Futures Trading Commission (CFTC) would handle regulation and enforcement.
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