Main Points:
- Only 5 of the 11 subcommittee members attended the June 24, 2025 hearing.
- Witnesses included former CFTC Chair Rostin Behnam, Coinbase’s Ryan VanGrack, Multicoin Capital’s Greg Xethalis, and Wharton’s Sarah Hammer.
- Senators debated principles for a future market structure bill following passage of the GENIUS Act on stablecoins.
- Attendance gaps attributed to scheduling conflicts and potential political calculations by senators.
- Meanwhile, the House CLARITY Act has advanced through committees and may be paired with the GENIUS Act on the House floor.
Introduction
On Tuesday, June 24, 2025, the U.S. Senate Banking Committee’s Subcommittee on Digital Assets convened a hearing titled “Exploring Bipartisan Legislative Frameworks for Digital Asset Market Structure.” Despite the hearing’s “bipartisan” branding, only five senators—four Republicans (Dave McCormick, Bill Hagerty, Bernie Moreno, and chair Cynthia Lummis) and one Democrat (Angela Alsobrooks, appearing in place of Ranking Member Ruben Gallego)—participated in questioning industry experts. This turnout represented less than half of the 11 usual subcommittee members, a shortfall largely blamed on overlapping committee obligations and, some suggest, tacit political maneuvering. The hearing agenda focused on laying out foundational principles for an upcoming market structure bill, which would build upon the GENIUS Act’s stablecoin framework and align U.S. digital asset regulation with global market needs.
Attendance and Bipartisan Engagement
Although the subcommittee typically comprises 11 senators, only five attended the hearing in Dirksen Senate Office Building 538. Chair Lummis acknowledged that multiple committee meetings that day created conflicts, reducing attendance to less than half of the expected quorum. She emphasized the importance of genuine bipartisan engagement, warning against drafting legislation that one party felt shut out of shaping.
The sparse turnout prompted criticism from observers who argue that such hearings signal a lack of urgency on Capitol Hill to regulate a $2 trillion global industry that increasingly intersects with traditional finance. With stablecoin regulations already underway via the GENIUS Act—passed by the Senate on June 17—lawmakers are under pressure to follow through on market structure reforms before the U.S. cedes leadership in crypto oversight to foreign regulators.
Key Testimonies and Insights
Rostin Behnam (Former CFTC Chair)
Behnam reiterated his call for Congress to grant the CFTC clear authority over non-security digital assets, arguing that current regulatory gaps have enabled fraud and threatened market stability. He urged a durable legislative framework that distinguishes tokens as “commodities or securities,” leveraging existing commodity derivatives market structure as a template.
Ryan VanGrack (Coinbase VP of Legal)
VanGrack highlighted the urgent need for a uniform, simple federal regime. He warned that ambiguity forces responsible innovators overseas and exposes consumers to unregulated products. He recommended clarifying jurisdictional boundaries—whether an asset is a security or commodity—and applying clear rules at each lifecycle stage from issuance to secondary trading.
Greg Xethalis (Multicoin Capital)
Xethalis emphasized liquidity and market resilience, suggesting that U.S. exchanges require standardized transparency and reporting obligations analogous to traditional finance to foster institutional participation.
Sarah Hammer (Wharton School Executive Director)
Hammer discussed the broader economic implications, noting that robust crypto regulation could enhance market efficiency and support U.S. leadership in financial innovation.
Political Dynamics and Implications
While Lummis stressed that bipartisan input was essential, the hearing illustrated shifting political tides. Lummis speculated that ties between political figures and crypto industry stakeholders, or concerns about family investments in digital assets, may have influenced some senators’ decisions to skip. Senator Moreno questioned why market structure had become a partisan issue, noting that neither side mentioned President Trump by name but hinted at disagreements over the “special carve‐out” in the GENIUS Act related to the president’s crypto holdings.
Angela Alsobrooks, the lone Democrat in attendance, served as a substitute for Ranking Member Gallego. As a GENIUS Act co‐sponsor, she defended the stablecoin bill’s merits while expressing openness to integrating market structure provisions, provided they did not jeopardize the stablecoin measures’ clean passage.
The House CLARITY Act: A Parallel Effort
In the U.S. House of Representatives, the Digital Asset Market Clarity Act (CLARITY Act) has progressed through both the Agriculture and Financial Services Committees. Modeled on the FIT21 proposal, the CLARITY Act divides jurisdiction: defining “digital commodities” for CFTC oversight while preserving SEC authority over investment contracts. It would establish registration classes—exchanges, brokers, and dealers—under CFTC purview, and mandate disclosure and ongoing reporting obligations for issuers.
House leaders, notably Majority Whip Tom Emmer, have indicated that they will pair the GENIUS Act with the CLARITY Act on the floor to ensure simultaneous passage of stablecoin and market structure measures. This strategy aims to maintain momentum while addressing Democratic concerns about comprehensive crypto oversight. However, some Democrats warn that rushing a combined package could dilute regulatory clarity and invite SEC‐CFTC turf battles.
Exchange Rate Context
For U.S. investors eyeing crypto opportunities abroad, the dollar‐yen exchange rate matters. As of June 24, 2025, 1 USD equaled approximately ¥144.59, a slight strengthening of the yen compared to earlier in the year (average of ¥148.50).
| Date | USD/JPY Rate |
|---|---|
| April 30, 2025 | 144.25 |
| May 31, 2025 | 144.75 |
| June 24, 2025 | 144.59 |
Attendance Overview
Below is a visual summary of subcommittee attendance at the June 24 hearing:
What Comes Next
With the Senate now possessing a clear blueprint—the GENIUS Act on stablecoins and a market structure bill framework drafted by Lummis and colleagues—the path forward hinges on rekindling bipartisan engagement. Senate Majority Leader Tim Scott has signaled interest in introducing formal market structure legislation later this summer, potentially co‐sponsored by members from both parties.
Concurrently, House leaders aim to merge stablecoin and market structure bills into a single package for a floor vote before the August recess. Observers caution that successful passage will depend on balancing regulatory rigor with industry innovation incentives, ensuring that rules are precise yet flexible enough to adapt to fast‐evolving crypto technologies.
Conclusion
The June 24 subcommittee hearing underscored both progress and challenges in U.S. crypto regulation. Expert witnesses united in calling for clearer, uniform rules to safeguard consumers and uphold America’s competitive edge. Yet the low turnout highlighted lingering political hurdles. As Congress advances the CLARITY Act in the House and contemplates a Senate companion, the industry watches closely: timely, bipartisan collaboration remains essential to shaping a balanced and effective digital asset market structure.
