More than 100 cryptocurrency firms and associations have urged the Senate Banking Committee to advance the Clarity Act, a legislative proposal aimed at establishing a federal framework for crypto markets.
In correspondence directed at Chairman Tim Scott, Ranking Member Elizabeth Warren, Subcommittee Chairwoman Cynthia Lummis, and Ranking Member Ruben Gallego, the coalition emphasized that governmental agencies alone cannot create stable regulations. The letter highlighted concerns about reverting to ‘regulation by enforcement,’ a reference to recent court actions initiated by the SEC and CFTC under President Joe Biden’s administration.
The initiative is supported by over 100 entities, including notable companies like Coinbase, Circle Internet Financial, Kraken, Ripple, Andreessen Horowitz, Paradigm, Consensys, Anchorage Digital, and Galaxy Digital. Additionally, developer organizations, state blockchain associations, and university chapters of Stand With Crypto are part of the coalition.
The group outlined six legislative priorities for Congress to consider: maintaining consumer rewards linked to payment stablecoins, clarifying oversight responsibilities between the SEC and CFTC, safeguarding developers who create non-custodial tools, establishing straightforward disclosure rules, and implementing a federal standard to prevent a mosaic of state regulations.
The coalition also noted that while other major regions such as the European Union have established comprehensive cryptocurrency frameworks, the U.S. lags behind, which could result in investments, jobs, and technological developments relocating overseas.
“Clear and comprehensive rules for digital asset markets are crucial for America,” stated Ji Hun Kim, CEO of the Crypto Council for Innovation, in an email. “The Senate Banking Committee can build upon years of bipartisan efforts and the success of the GENIUS Act by promoting legislation that provides regulatory clarity, robust consumer protections, and strong safeguards for developers. A markup will move us closer to lasting rules that position the U.S. as a global leader in digital asset markets,” Kim added.
As of now, the Committee has yet to schedule a markup session.