100+ Crypto Firms Urge Senate to Advance Clarity Act, Warn of Innovation Moving Offshore

Bitcoin Magazine

100+ Crypto Firms Urge Senate to Advance Clarity Act, Warn of Innovation Moving Offshore

More than 100 crypto firms and industry groups are pressing the U.S. Senate to advance long-awaited market structure legislation, warning that continued inaction risks pushing innovation and capital outside the country.

In a joint letter sent April 23, the Crypto Council for Innovation and the Blockchain Association urged the Senate Banking Committee to move forward with a markup of the “Clarity Act,” a bill designed to establish a comprehensive federal framework for digital assets.

The letter, seen by Bitcoin Magazine, was addressed to Committee Chairman Tim Scott, Ranking Member Elizabeth Warren, Subcommittee Chair Cynthia Lummis, and Ranking Member Ruben Gallego, reflecting growing industry coordination around a single legislative priority: regulatory clarity.

Signatories include major crypto companies such as Coinbase, Ripple, Kraken, and Circle, along with venture firms and developer organizations. Collectively, the coalition represents a broad cross-section of the digital asset ecosystem, from infrastructure providers to academic groups.

At the center of the push is the need to clearly define jurisdiction between the Securities and Exchange Commission and the Commodity Futures Trading Commission. The absence of statutory guidance has led to what the industry describes as “regulation by enforcement,” referencing a wave of lawsuits and actions brought by both agencies in recent years.

While regulators have attempted to assert oversight through litigation, the coalition argues that agency action alone cannot provide the durable, predictable framework required for long-term investment. Instead, it calls for Congress to codify clear rules governing digital asset classification, trading, and disclosure requirements.

Crypto innovation will leave the United States 

The letter outlines several additional priorities. These include protections for developers building non-custodial technologies, preservation of consumer rewards tied to payment stablecoins, and streamlined disclosure regimes tailored to blockchain-based assets. It also emphasizes the importance of avoiding a fragmented system of state-by-state regulation, advocating for a unified federal standard.

Industry leaders warn that the U.S. is falling behind other jurisdictions that have already implemented comprehensive crypto frameworks. 

The European Union’s Markets in Crypto-Assets regulation, for example, has provided legal certainty across member states, positioning the bloc as a competitive hub for digital asset innovation.

Ji Hun Kim, chief executive of the Crypto Council for Innovation, said in a statement that the U.S. faces a “critical moment” in shaping the future of financial technology. He argued that bipartisan groundwork already laid in Congress, alongside efforts such as the GENIUS Act on stablecoins, provides a foundation for broader legislation.

“The United States cannot risk a return to the previous era of regulation by enforcement,” the letter states. “Market structure legislation would prevent that uncertainty by establishing clear jurisdictional boundaries, disclosure regimes, and fit-for-purpose rules.”

Despite the urgency conveyed by the coalition, the Senate Banking Committee has yet to schedule a markup of the Clarity Act. The delay leaves the industry in a holding pattern as lawmakers continue to negotiate the contours of federal crypto oversight.

Yesterday, U.S Treasury Secretary Scott Bessent urged the Senate to pass the legislation during a hearing on Donald Trump’s FY2027 budget, arguing it is critical to maintaining U.S. financial leadership and the dollar’s reserve status. 

He framed digital assets as both an economic and national security priority, emphasizing the need for regulatory clarity and stronger oversight frameworks like AML and KYC. Lawmakers remain divided, with competing bills such as the Digital Asset Market Clarity Act and the Digital Commodity Intermediaries Act still needing reconciliation before advancing. Bessent also warned that unclear U.S. rules have pushed crypto innovation abroad, while expressing confidence that bipartisan agreement is still achievable.

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This post 100+ Crypto Firms Urge Senate to Advance Clarity Act, Warn of Innovation Moving Offshore first appeared on Bitcoin Magazine and is written by Micah Zimmerman.