'A Big, Bipartisan Group Working Hard' On Crypto Bill As Paul Atkins Warns On Conflicts Of Interest

According to Sen. Mark Warner (D-VI), a "big, bipartisan group working hard" to advance the Senate's crypto market structure bill, even as talks face mounting obstacles.

Future-Proof Policy Requires Congress              

During a Senate Banking Committee hearing, SEC Chairman Paul Atkins cautioned that while the agency can issue rules under his "Project Crypto" agenda, any clarity created solely through SEC action could be reversed by a future administration.

Atkins stressed that durable, "future-proof" crypto regulation requires legislation passed by Congress, not just agency rulemaking.

The proposed Digital Asset Market Clarity Act continues to face sticking points. Disputes remain between crypto firms and banks over stablecoin rewards, while some Democrats have raised concerns about regulatory staffing levels and potential conflicts of interest. Lawmakers are also divided over how decentralized finance platforms should address illicit finance risks.

Warner, a leading Democratic negotiator, emphasized the need to prevent bad actors from exploiting DeFi while avoiding overly broad enforcement loopholes, signaling that additional safeguards are required before securing broader Democratic backing.

Industry Pressure Builds

A version of the Clarity Act has passed the House and cleared the Senate Agriculture Committee, but final Senate approval will require bipartisan support.

Senate Banking Committee Chairman Tim Scott (R-SC) has expressed optimism about reaching a deal.

However, industry leaders such as Coinbase CEO Brian Armstrong have warned they could withdraw support if the final framework proves unfavorable.

The White House has urged negotiators to strike a compromise, underscoring that SEC-led regulatory efforts remain vulnerable without clear congressional authorization.

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