{"id":41091,"date":"2025-08-08T04:01:35","date_gmt":"2025-08-08T04:01:35","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=41091"},"modified":"2025-08-08T04:01:35","modified_gmt":"2025-08-08T04:01:35","slug":"crypto-industry-split-between-congresss-versions-of-market-structure-bill-heres-why","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=41091","title":{"rendered":"Crypto Industry Split Between Congress\u2019s Versions Of Market Structure Bill \u2013 Here\u2019s Why"},"content":{"rendered":"
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As the US Congress continues to work on crypto-related legislation, some industry leaders disagree on which version of the market structure bill will provide the much-needed clarity to the sector.<\/p>\n

Paradigm Champions Senate\u2019s Crypto Bill<\/h2>\n

On Thursday, several industry players discussed the differences between the US Congress\u2019s versions of one of the landmark crypto bills. Following the passage of the GENIUS Act, the sector is now focused on the key market structure legislation, which is expected to offer the long-awaited clarity and protection for the industry.<\/p>\n

Notably, the House of Representatives introduced and already passed the Digital Asset Market Clarity (CLARITY) Act of 2025, which seeks to establish a regulatory framework for crypto assets in the US, facilitate the growth of crypto projects, and protect customers.<\/p>\n

In June, the US Senate started working on principles for its version of the market structure legislation, looking to draft a comprehensive set of rules. As reported<\/a> by Bitcoinist, the Senate Banking Committee released a draft of its \u201cframework of principles,\u201d outlining six key principles for the upcoming crypto bill, which were allegedly \u201cvery well received\u201d by the Decentralized Finance (DeFi) sector.<\/p>\n

Today, Paradigm\u2019s General Partner, Dan Robinson, shared<\/a> the firm\u2019s response to the Senate Banking Committee\u2019s discussion draft on the bill, suggesting that this version is the best approach. Chainlink Labs, Galaxy Digital, Tribe Capital, Multicoin Capital, Electric Capital, and Ribbit Capital co-signed the letter.<\/p>\n

Robinson argued that while both bills<\/a> are an \u201cimprovement on the Howey<\/em>-based regime (\u2026), the Senate draft is significantly simpler, and avoids forcing decentralized tokens and protocols to fit themselves into an inflexible legislative framework.\u201d<\/p>\n

The lawyer explained that the Senate\u2019s draft focuses on the concept of ancillary assets, which \u201cdistinguishes the typical crypto asset from securities due to its innate nature.\u201d To the firms, this is the \u201ccleanest test\u201d that protects decentralized crypto assets while preventing traditional securities issuers from improperly exploiting this framework.<\/p>\n

Paradigm\u2019s VP of Regulatory Affairs added<\/a> that if regulatory clarity involves replacing the current \u201cinscrutable regime that no one can register under or operate in with another complex regime that requires a phalanx of lawyers & millions of dollars to comprehend, this exercise will have failed.\u201d<\/p>\n

Industry Players Divided Over Legislation<\/h2>\n

In an X post, journalist Eleanor Terret noted that most of the major crypto Venture Capital (VC) firms, except a16z crypto, \u201caligned on market structure and token classification for the first time.\u201d<\/p>\n

Nonetheless, a16z crypto\u2019s Head of Policy and General Counsel, Miles Jennings, disagreed<\/a>, stating \u201cmost major crypto hedge funds is more accurate. Most major crypto VCs supported CLARITY\u2019s token maturity framework.\u201d<\/p>\n

Jennings highlighted the Decentralization Research Center\u2019s (DRC) summary chart comparing the Senate and House\u2019s versions, arguing that \u201cthe undermining of CLARITY\u2019s transfer restriction framework creates short-term incentives to circumvent decentralization and dump on retail. That\u2019s not good for innovation.\u201d<\/p>\n

\"crypto\"<\/p>\n

Earlier this week, the DCR also submitted its response to the Senate Banking Committee\u2019s discussion draft, underscoring the importance of \u201cbuilding on the strong foundation established by the CLARITY Act.\u201d The non-profit organization considers that while the Senate\u2019s version is still evolving, the House\u2019s \u201crobust, control-based decentralization test\u201d is the better approach.<\/p>\n

Last month, the DCR and 50 other leading industry players sent a joint letter<\/a> to Congress leaders supporting the CLARITY Act, the largest coalition of organizations in agreement on a particular test for decentralization, as the post noted.<\/p>\n

Additionally, the non-profit affirmed that \u201csound market structure legislation must be grounded in control\u201d and regulatory attention must focus on where it is warranted, while \u201cpreserving space for innovation and open systems.\u201d<\/p>\n

Similarly, attorney Gabriel Shapiro concurred<\/a> that \u201cthe House approach is far superior.\u201d To him, the Senate\u2019s test is a \u201cpure race to the bottom\u201d with \u201cstuff that makes no sense from a policy perspective.\u201d<\/p>\n

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The fewer rights people have, the less regulated something is? it should be the opposite\u2013if they have more rights, they are more protected under general contract law and there is less need for regulation. . . this is how you get pure memecoin mania forever, equity\/token conflict of interest forever, etc. . .<\/p>\n<\/blockquote>\n

\"crypto,<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

As the US Congress continues to work on crypto-related legislation, some industry leaders disagree on which version of the market structure bill will provide the much-needed clarity to the sector. Paradigm Champions Senate\u2019s Crypto Bill On Thursday, several industry players discussed the differences between the US Congress\u2019s versions of one of the landmark crypto bills. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-41091","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/41091","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=41091"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/41091\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=41091"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=41091"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=41091"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}