Three of the largest US-based cryptocurrency exchanges — Coinbase, Kraken, and Gemini — successfully lobbied US senators to remove a key provision from a digital asset market structure bill that would have required platforms to only offer trading on tokens “not readily susceptible to manipulation,” according to a report published Friday by Politico.
Behind the lobbying push
The provision, included in an earlier draft of the bill under consideration in the Senate Agriculture Committee, was seen by the exchanges as a potential barrier to listing smaller or newer digital tokens. According to the report, the companies argued that the language was too restrictive and could stifle innovation by making it difficult for exchanges to list tokens that had not yet established a deep trading history.
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The edit reportedly occurred after the Senate Agriculture Committee voted to advance its version of the bill in January. The development signals the growing influence of crypto companies in shaping legislation, particularly as they maintain direct communication channels with the Trump administration and key lawmakers.
The CLARITY Act and regulatory field
The broader market structure bill, known as the CLARITY Act when it passed the US House of Representatives in July 2025, would grant the Commodity Futures Trading Commission (CFTC) expanded authority to oversee and regulate digital assets. Both the CFTC and the Securities and Exchange Commission (SEC) announced in March their intention to coordinate oversight of the crypto industry, even without formal congressional action.
The Senate Banking Committee postponed its markup of the bill hours after Coinbase CEO Brian Armstrong stated publicly that the exchange could not support the legislation “as written,” citing concerns specifically related to tokenized equities.
Industry reaction and next steps
Coinbase chief policy officer Faryar Shirzad responded to the Politico report on social media, calling it “old news” and noting that the issue had already been addressed during the markup by the Senate Agriculture Committee. Last week, two US senators announced a compromise deal on stablecoin yield between representatives of the crypto and banking industries, which could allow the CLARITY Act to advance in the banking committee.
Coinbase’s US policy vice president, Kara Calvert, said on Thursday that the exchange expected a markup in the banking committee by next week. Other lawmakers have predicted the bill could become law before the Senate breaks for August recess, while White House crypto adviser Patrick Witt stated that the administration is aiming for a July 4 deadline for the bill to pass the House after a June Senate vote.
Why this matters
The removal of the manipulation provision highlights the delicate balance lawmakers face as they attempt to craft legislation that protects investors while developing innovation in the digital asset space. Critics argue that weakening such safeguards could expose retail investors to higher risks, while industry proponents maintain that overly restrictive rules would drive innovation offshore. The outcome of this bill will likely set a precedent for how the US regulates cryptocurrency markets for years to come.
Conclusion
The lobbying efforts by Coinbase, Kraken, and Gemini to remove the token manipulation provision from the Senate bill underscore the significant influence the crypto industry wields in Washington. As the CLARITY Act moves closer to a potential vote, the debate over investor protection versus market flexibility remains a central tension in US crypto regulation.
FAQs
Q1: What provision did the crypto exchanges want removed from the Senate bill?
The exchanges pushed to remove language that would have required platforms to only offer trading on digital assets “not readily susceptible to manipulation,” arguing it could hinder listings of smaller tokens.
Q2: Which exchanges were involved in the lobbying effort?
According to the Politico report, Coinbase, Kraken, and Gemini were the three companies that pressed US senators for the change.
Q3: What is the CLARITY Act?
The CLARITY Act is a market structure bill that passed the US House in July 2025. It aims to give the Commodity Futures Trading Commission (CFTC) more authority to oversee digital assets, and is currently under consideration in the Senate.
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