Crypto exchanges sought to remove token-risk provision from U.S. market structure bill

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Dan Blystone

09.05.2026

Crypto exchanges sought to remove token-risk provision from U.S. market structure bill — Crypto lobby reshapes bill

As the U.S. Senate weighs crypto market structure legislation in 2026, major exchanges are reportedly lobbying to narrow wording that could restrict which digital assets they can list. The effort centers on language tied to market manipulation risk and highlights the industry's influence over a bill that could expand the CFTC's authority over crypto oversight.

Highlights

Coinbase, Kraken, and Gemini lobbied U.S. lawmakers in early 2026 to remove a Senate bill provision restricting exchange token listings to assets 'not readily susceptible to manipulation.'
The CLARITY Act, granting the Commodity Futures Trading Commission expanded digital asset authority, passed the U.S. House in July 2025 with the SEC and CFTC agreeing to coordinate oversight regardless of congressional action.
Lawmakers anticipate a Senate Banking Committee markup of the bill by next week with potential enactment before the Senate's August recess and a White House July 4 House passage target.

Senate bill language and lobbying push

As first reported by Cointelegraph, Coinbase, Kraken and Gemini pressed U.S. lawmakers earlier in 2026 to remove a provision from the Senate's digital asset market structure bill that would require exchanges to offer trading only in assets "not readily susceptible to manipulation." The report says the companies argue the clause could make it harder to list smaller tokens and limit exchange offerings.

The reported change comes after the Senate Agriculture Committee voted in January to advance its version of the legislation. The debate around the wording also gains weight after the Senate Banking Committee delays its markup of the bill hours after Coinbase Chief Executive Brian Armstrong says the exchange cannot support the legislation as written, citing concerns around tokenized equities.

The measure is linked to the CLARITY Act, the market structure bill that passes the U.S. House of Representatives in July 2025. Under that framework, the Commodity Futures Trading Commission would receive broader authority to oversee and regulate digital assets, while the CFTC and the Securities and Exchange Commission say in March that they intend to coordinate crypto oversight even without congressional action.

Timeline for passage and industry impact

Coinbase chief policy officer Faryar Shirzad calls the Politico report "old news" in a social media response and says the issue is tied to language included during the Senate Agriculture Committee markup. His comments arrive as lawmakers and industry participants continue to negotiate the bill's final shape.

Last week, two U.S. senators announce a compromise on stablecoin yield between crypto and banking industry representatives, a step that could help move the CLARITY Act through the banking committee. Some lawmakers are still pushing to add ethics provisions covering possible conflicts of interest, but expectations for passage remain relatively near term.

Coinbase U.S. policy vice president Kara Calvert says on Thursday that the exchange expects a banking committee markup by next week. Other lawmakers say the bill could become law before the Senate's August recess, while White House crypto adviser Patrick Witt says the administration is targeting July 4 for House passage after a June Senate vote.

In our earlier analysis of Coinbase (COIN) in Q1 2026, we detailed the company’s revenue drop and GAAP net loss, alongside a 14% workforce reduction and an AI-driven restructuring aimed at cutting costs. We also noted Coinbase’s enterprise push through payment partnerships with Amazon Web Services and Stripe, while technical indicators suggested mostly range-bound trading as markets looked for fresh catalysts.

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