Senate Holds Digital Asset Market Structure Hearing With Low Attendance

A hearing on the potential market structure bill for digital assets was held on Tuesday, with only five out of the 11 senators typically on the digital assets subcommittee present. The subcommittee chair, Cynthia Lummis, acknowledged the low attendance, attributing it to scheduling conflicts with other committees. The senators in attendance included Republicans Dave McCormick, Bill Hagerty, Bernie Moreno, and Cynthia Lummis, along with Democratic Senator Angela Alsobrooks, who was sitting in for the ranking member, Ruben Gallego.

The hearing featured testimonies from former US Commodity Futures Trading Commission Chair Rostin Behnam, Coinbase’s vice president of legal, Ryan VanGrack, Multicoin Capital’s general counsel, Greg Xethalis, and University of Pennsylvania Wharton School Executive Director, Sarah Hammer. The lawmakers questioned the experts on the principles behind the Senate’s potential introduction of legislation to establish a crypto market structure bill, following the successful passage of the stablecoin bill, the GENIUS Act.

Lummis expressed concern about the lack of bipartisan engagement around crypto bills, suggesting that the administration's ties to the crypto industry might be a factor. She emphasized the importance of ensuring that all stakeholders have adequate input in the legislative process. Alsobrooks, who was a cosponsor of the original GENIUS Act, voted in favor of the amended bill and was present to represent the Democratic perspective.

The proposed market structure legislation in the Senate follows efforts in the House of Representatives to pass its own bill, the Digital Asset Market Clarity, or CLARITY Act. The legislation moved out of committee in June and is expected to be considered for a floor vote soon. The hearing highlighted the need for clear, unified rules to keep the digital asset industry thriving and to ensure that all stakeholders have a voice in the legislative process.

The absence of many senators from the hearing raises questions about the level of commitment and engagement from both parties in addressing the regulatory framework for digital assets. The low attendance could potentially slow down the legislative process, as it may indicate a lack of urgency or consensus among lawmakers. However, the presence of key figures like Lummis and Alsobrooks suggests that there is still a push for bipartisan cooperation and a desire to move forward with legislation that benefits the digital asset industry.

The hearing also underscored the complexity of the regulatory landscape for digital assets, with experts providing insights into the principles that should guide the development of a market structure bill. The testimonies highlighted the need for a balanced approach that protects investors while fostering innovation and growth in the industry. The experts' input will be crucial in shaping the legislation and ensuring that it addresses the unique challenges and opportunities presented by digital assets.

As the Senate continues to work on the market structure bill, it will be important for lawmakers to engage in meaningful dialogue and collaboration to develop a comprehensive and effective regulatory framework. The hearing on Tuesday was a step in the right direction, but more work needs to be done to ensure that all voices are heard and that the final legislation reflects the best interests of the digital asset industry and its stakeholders.