Why Did Coinbase, Kraken, and Gemini Push for Changes?
Coinbase, Kraken, and Gemini reportedly lobbied US lawmakers earlier this year to remove language from a digital asset market structure bill that could have restricted token listings on crypto exchanges.
According to Politico, the companies objected to a provision requiring trading platforms to list only digital assets “not readily susceptible to manipulation.” The exchanges argued that the language was too broad and could make it difficult to support smaller or less liquid tokens.
The reported changes came after the Senate Agriculture Committee advanced its version of the legislation in January. The debate highlights how token classification and listing standards remain one of the most contested issues in US crypto regulation.
For exchanges, stricter manipulation thresholds could increase legal and compliance risk around listing decisions, particularly for emerging tokens with limited trading history or concentrated ownership.
How Much Influence Does the Crypto Industry Have Over the Bill?
The reported lobbying effort adds to broader scrutiny over the crypto industry’s influence on Washington policymaking. The Senate Banking Committee reportedly delayed its markup on the legislation shortly after Coinbase CEO Brian Armstrong publicly criticized the bill “as written,” particularly over provisions tied to tokenized equities.
The market structure legislation, known as the CLARITY Act after passing the US House in July 2025, would expand the Commodity Futures Trading Commission’s authority over digital assets. The bill is widely viewed as one of the most important crypto regulatory efforts currently moving through Congress.
The timing of the reported edits also reflects increasing coordination between crypto firms, lawmakers, and the Trump administration as the industry pushes for a regulatory framework more favorable to exchange operations and token issuance.
Investor Takeaway
What Role Will the CFTC and SEC Play?
Under the proposed framework, the CFTC would receive expanded oversight powers over digital asset markets, while the Securities and Exchange Commission would continue to oversee securities-related activity.
Even before Congress finalizes legislation, both agencies have already indicated plans to coordinate supervision of the crypto sector. In March, the CFTC and SEC announced their intention to work together on oversight matters despite the absence of finalized statutory authority.
The issue is particularly important for exchanges because jurisdiction determines listing obligations, disclosure requirements, and enforcement exposure. A token categorized as a commodity may face a very different regulatory pathway than one treated as a security.
Investor Takeaway
When Could the CLARITY Act Advance?
Momentum around the bill has accelerated in recent weeks following a reported compromise on stablecoin yield provisions between representatives from the crypto and banking industries.
Lawmakers and industry participants increasingly expect movement before Congress breaks for its August recess. Coinbase US policy vice president Kara Calvert said this week that the company expected a banking committee markup soon, while White House crypto adviser Patrick Witt reportedly targeted a July 4 deadline for House passage after a Senate vote in June.
Some lawmakers are still pushing for ethics and conflict-of-interest provisions to be added to the legislation, particularly given growing concern over ties between political figures and the crypto industry.
The final structure of the bill will likely determine not only how digital assets are regulated in the United States, but also which firms gain the greatest advantage under the new framework.
