Three US exchanges went to work on the Hill earlier this year. Coinbase, Kraken, and Gemini pressed senators to strip language from the digital asset market structure bill that would have required platforms to list only tokens “not readily susceptible to manipulation.” The edit came after the Senate Agriculture Committee advanced its version in January. According to wire reports, the three exchanges argued the provision made it harder to list smaller tokens.
The language got removed. Coinbase chief policy officer Faryar Shirzad said on social media the issue was already dealt with in the Agriculture Committee markup. He called the reports “old news.”
Coinbase Kraken Gemini lobbied senators ahead of banking committee review
The exchanges made their case as the bill moved between committees. The broader legislation, labelled the CLARITY Act when the House passed it in July 2025, hands more digital asset authority to the Commodity Futures Trading Commission. Both the CFTC and the Securities and Exchange Commission announced plans to coordinate crypto oversight in March, regardless of whether Congress acts.
Coinbase Kraken Gemini lobbied senators at a moment when crypto firms had open lines into the administration. Coinbase CEO Brian Armstrong said publicly in recent weeks that the exchange could not support the bill “as written,” citing concerns over tokenised equities. That was hours before the Senate Banking Committee postponed its markup.
Token manipulation rules and what got stripped
The original provision aimed to keep manipulation risk off retail platforms. The requirement that exchanges list only assets not readily susceptible to manipulation would have affected the tail end of the token universe. Smaller caps, illiquid names, the sort of thing that moves 30% on low volume.
Real money has no interest in those. Fast money trades around them. Retail gets caught. The exchanges argued the language created listing uncertainty. Regulators would have had wide discretion over what counted as manipulable. The provision got pulled.
Stablecoin yield compromise and timeline speculation
A separate stablecoin yield compromise emerged last week between crypto and banking representatives. That deal could clear the path for the CLARITY Act to advance in the banking committee. Some lawmakers want ethics language on conflicts of interest included. Most are pencilling in passage within weeks.
Coinbase US policy vice president Kara Calvert said the exchange expected a banking committee markup by next week. Other senators predicted the bill would become law before the August recess. White House crypto adviser Patrick Witt said the administration was aiming for a July 4 deadline for House passage after a Senate vote in June.
Regulatory coordination without the bill
The CFTC and SEC announced coordination plans in March. That was a signal both regulators intend to move even if the bill stalls. The CLARITY Act formalises jurisdiction but the agencies already started dividing turf. Spot crypto trading, derivatives, custody arrangements, stablecoin issuance. All areas where the two bodies are working out who leads.
The bill codifies it. Without the bill, coordination happens through enforcement actions and no-action letters. Messier but not unworkable.
| Event | Date | Outcome |
|---|---|---|
| Senate Agriculture Committee vote | January 2026 | Bill advanced |
| Token manipulation language removed | Post-January markup | Exchanges successful |
| CFTC-SEC coordination announcement | March 2026 | Joint oversight plans |
| Expected banking committee markup | Next week (per Calvert) | Pending |
Coinbase Kraken Gemini lobbied senators with Trump-era access
The exchanges had influence. The Trump administration opened the door to crypto executives in a way the prior White House did not. Direct lines to policy advisers. Public statements from CEOs that moved committee timelines. Armstrong’s comments on tokenised equities came hours before the banking committee postponed. That is not coincidence.
The provision removal signals how much weight the platforms carry when the language affects their business model. Listing smaller tokens generates fee income. Restricting that universe on manipulation grounds tightens revenue. The exchanges argued it. The language came out.
Next gate is the banking committee. Stablecoin yield is settled. Ethics provisions are the remaining sticking point. The bill is close. Whether it lands before recess depends on how much senators want to argue over conflicts language. The White House wants it done by the Fourth of July. That leaves four weeks.
This article is for information purposes only and does not constitute investment advice. Readers should not act on any information contained here without first consulting an authorised financial adviser. Past performance is not a reliable indicator of future results.
