PANews reported on July 10 that a key subcommittee of the U.S. Senate is debating proposed regulations for digital assets, with Republicans advocating for moderate regulation and Democrats warning of potential loopholes and conflicts of interest. On Wednesday, the Senate Banking Committee held a hearing, aiming to finalize cryptocurrency market structure legislation before the subcommittee deadline of September 30, with the House also set to review related bills next week.
Chairman Tim Scott stated that legislation must clearly define security tokens and ensure measures against illegal finance. Democratic Senator Raphael Warnock criticized the proposal for failing to address conflicts of interest within the executive branch. At the hearing, former Commodity Futures Trading Commission Chairman Timothy Massad warned that the current legislation grants too broad an exemption to decentralized cryptocurrency companies, which could lead to regulatory evasion. Democrats are also concerned that cryptocurrency companies will evade registration by claiming 'decentralization.' Republican Senators Cynthia Lummis, Thom Tillis, and others released market structure principles last month that are generally consistent with the (CLARITY Act). Bill Hagerty expressed that he is not worried about losing bipartisan support, predicting that Democrats in favor of stablecoin legislation will pragmatically push forward.