A coalition of U.S. cryptocurrency companies and industry associations has urged the Senate Banking Committee to continue advancing its review of the Clarifying Act, a bill aimed at establishing a federal framework for the cryptocurrency market.
The group noted in a letter to Chairman Tim Scott, Subcommittee Chair Elizabeth Warren, Cynthia Lummis, and Ruben Gallego that actions by government agencies alone cannot establish stable regulations.
The letter mentioned the risk of returning to "regulatory enforcement," referring to a series of lawsuits brought by the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) that established the policies of President Joe Biden.
More than 100 signatories support this action, including well-known 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 Stand With Crypto university chapters.
The coalition outlined six priority issues that lawmakers need to address. These include protecting consumer rights tied to payment stablecoins, clarifying the regulatory responsibilities of the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission, and safeguarding developers building non-custodial tools.
It also calls for easier-to-comply disclosure rules and a federal standard to prevent a patchwork of state laws.
Other major jurisdictions, such as the European Union, have established comprehensive cryptocurrency frameworks, and the organization warned that the lack of related legislation in the United States could push investment, jobs, and development overseas.
“The United States needs clear, comprehensive regulations for the digital assets market. This is a global competition, and the United States must take the lead,” wrote Kim Ji-hoon, CEO of the Committee for Crypto Innovation, in an email.
Gold said: "The Senate Banking Committee can build on years of bipartisan cooperation and the success of the Genius Act to advance legislation that clarifies regulatory direction, strengthens consumer protection, and provides robust safeguards for developers. This review will bring us closer to establishing durable and effective rules that ensure the United States becomes the standard-setter in the global digital assets market."
The committee has not yet scheduled a review.