The US Senate is taking steps to create clear rules for the crypto industry.
- Senators discuss new laws to make crypto markets safer.
- Former CFTC chair warns about risks from lack of regulations.
- Bills in both Senate and House aim to define crypto rules and protections.
Senate Holds Hearing on Crypto Market Structure
On Tuesday, the US Senate Banking Committee’s digital assets subcommittee began reviewing a plan to build a digital asset market structure. Lawmakers are looking at ways to define how crypto markets should work. They also want to protect investors from fraud and conflicts of interest. The hearing included former regulators and industry leaders sharing their views on needed changes.
Former CFTC Chair Raises Concerns
In a speech prepared for the hearing, former Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam said the current system is not enough. He warned that without new rules, investors face serious risks. These include lack of transparency, market manipulation, and fraud. Behnam urged lawmakers to build rules that focus on customer protection, better risk controls, and stronger market defenses.
New Bills Aim to Provide Clarity
The Senate is working alongside the House of Representatives, where lawmakers are also reviewing a bill called the CLARITY Act. This bill seeks to explain the legal status of digital assets, divide responsibilities between regulators, and protect crypto users. Senate Republicans say the lack of clear rules pushes the crypto industry to other countries with friendlier laws, like Singapore and the European Union.
Bipartisan Support and Political Tensions
Some Democrats are joining Republicans in supporting crypto bills. In June, the Senate passed the GENIUS Act, which focuses on stablecoin regulations. However, not all members agree. Senator Elizabeth Warren has raised concerns about former President Trump’s ties to the crypto world, especially his family’s connection to a stablecoin company. Warren voted against the GENIUS Act and may speak further during the hearings about possible conflicts of interest.
What This Could Mean Next
The outcome of these Senate and House actions could shape how the US regulates the crypto industry. If lawmakers agree on a plan, it could improve investor protections, stop bad actors, and provide clearer paths for companies to operate legally in the United States.
Source: cointelegraph.com
