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. Each group has voiced different views regarding 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, known as the CLARITY Act. According to lawmakers in the majority control of Congress, it was a “myth” that the legislation “was written by industry and serves industry interests,” with proponents claiming 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,” stated Senate Republicans. “It strengthens national security, protects investors, and ensures that innovation occurs under clear, enforceable rules.”
Republicans are facing 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 the consideration of the bill.
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 remains 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 contained a few provisions 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 determine the level of support for amendments proposed by Senate Democrats and Republicans, and whether they will 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 January 21, with a markup hearing scheduled for January 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.