A "bipartisan" hearing held on Tuesday to explore legislative frameworks for digital asset market structure saw a conspicuously low turnout of senators. The hearing was conducted by the Senate Banking Committee's subcommittee on digital assets. Subcommittee chair Cynthia Lummis acknowledged the sparse attendance, attributing it to scheduling conflicts with other committees. Only five senators were present out of the eleven who typically serve on the digital assets subcommittee.
The senators who did attend included Republicans Dave McCormick, Bill Hagerty, and Bernie Moreno, along with Lummis herself. Democrat Angela Alsobrooks was also present, filling in for ranking member Ruben Gallego. The hearing featured testimonies from several experts in the field. These included Rostin Behnam, former Chair of the US Commodity Futures Trading Commission (CFTC), Ryan VanGrack, Coinbase's Vice President of Legal, Greg Xethalis, General Counsel of Multicoin Capital, and Sarah Hammer, Executive Director of the University of Pennsylvania Wharton School.
The lawmakers present questioned the experts on the principles that would underpin potential legislation to establish a crypto market structure bill in the Senate, especially following the successful passage of the stablecoin bill, the GENIUS Act. Lummis expressed concern regarding the limited bipartisan engagement on crypto bills. She suggested that the Biden administration's connections to the crypto industry might be a contributing factor. Lummis stressed the importance of ensuring that all stakeholders have adequate input into the legislative process. Alsobrooks, who co-sponsored the original GENIUS Act and voted in favor of the amended version, attended to represent the Democratic perspective.
The proposed market structure legislation in the Senate mirrors efforts in the House of Representatives to pass its own bill, known as the Digital Asset Market Clarity Act, or CLARITY Act. This legislation has already moved out of committee in June and is anticipated to be considered for a floor vote soon. The hearing underscored the necessity for clear and unified rules to foster a thriving digital asset industry and ensure consumer protection. Lummis noted she did not want to create legislation without adequate input from both sides of the aisle. She also voiced her confusion about the shift in bipartisan engagement on crypto bills, mentioning the potential influence of administration members' family connections to the digital asset space.
The absence of many senators from what was branded a "bipartisan" hearing raises questions about the level of commitment and consensus surrounding crypto regulation in the Senate. Despite the low attendance, the hearing proceeded, gathering crucial expert insights that could shape the future of digital asset legislation.
