Senate Weighs Crypto Market Structure as Ex-Regulator Warns
The U.S. Senate Banking Committee’s digital assets subcommittee will conduct a landmark hearing Tuesday to discuss potential legislation that would outline digital asset markets. Witnesses include former Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam, as well as legal counsel from Coinbase and Multicoin Capital.
Behnam: “Current Trajectory Is Not Sustainable”
In written testimony, Behnam warned that without a robust framework addressing crypto-specific risks, regulatory gaps would threaten wider financial stability. He urged rules prioritizing customer protection, eliminating conflicts of interest, and making markets more resilient.
“Inaction will only lead to increased risk… through lack of market transparency, fraud, market manipulation, corruption, and conflicts of interest,” his statement says.
House and Senate Push for Clarity
The Senate hearing comes after House action on the Digital Asset Market Clarity (CLARITY) Act, which cleared committee in June. GOP subcommittee chairs prefer clear legal definitions for digital assets and joint oversight to prevent overreach by any single agency.
Senator Cynthia Lummis (R-WY) highlighted a sense of urgency:
“While the EU and Singapore have acted, the U.S. is on the sidelines. That ends today.”
Partisan Divisions Emerge Over Stablecoin Bill
There has been bipartisan support, with several Democrats supporting Republican-proposed crypto bills. However, the GENIUS Act—a bill to regulate stablecoins—was greeted by opposition from Senator Elizabeth Warren (D-MA),
Warren is expected to raise questions on potential conflicts of interest with former President Donald Trump, whose family allegedly has invested in a stablecoin issuer.
