More than 100 crypto companies have issued a strong warning to the U.S. Senate, cautioning that continued delay on the CLARITY Act risks a dangerous regulatory deadlock. The industry leaders are urging Congress to advance comprehensive digital asset market structure legislation, warning that further inaction could result in either no regulation at all or a compromised framework that ultimately serves no one.
The coalition’s priorities are clear: establishing distinct roles for the SEC and CFTC, protecting non-custodial developers from enforcement overreach, simplifying disclosure requirements, and preventing a fragmented state-by-state regulatory regime.
A letter was issued to the U.S Senate on behalf of the Crypto Council for Innovation (CCI), the Blockchain Association (BA), and a broad coalition of companies and organizations across the digital asset ecosystem.
“Timely action is critical, as other major jurisdictions have already implemented comprehensive
frameworks… the U.S. needs a comprehensive market structure framework to support domestic digital
asset innovation, or risk migration of investment, jobs, and technological development offshore“, the letter states.
“Banks vs Crypto” Battle Is Over as DeFi and TradFi Lines Dissolve
In an exclusive comment to Disruption Banking, Anil Oncu, CEO of Bitpace, said the rapid evolution of the industry is making old battle lines irrelevant.
“While Washington argues over regulatory perimeters, adoption is rendering the ‘banks versus crypto’ framing obsolete,” Oncu said. He pointed to Circle and Ripple securing conditional national trust bank charters from the OCC, Bybit’s plans to offer direct bank accounts, European lenders launching a euro-backed stablecoin, and Standard Chartered developing a Hong Kong dollar token.
“The lines between DeFi and TradFi are not blurring, but rather dissolving,” Oncu added.
Oncu cautioned that the greatest threat is not disruption between sectors but prolonged congressional inaction:
“The greatest danger now is that the current deadlock… produces either no regulation at all, or regulation so compromised that it satisfies nobody and protects nothing.”
Coinbase Withdrawal Highlights Fragility of Consensus as Moreno’s End-of-May Deadline Looms
Oncu referenced Coinbase’s earlier decision to withdraw support from draft rules, noting the fragility of consensus and urging that walking away from the table is not a solution and breaking the deadlock will require a balanced compromise between banking and crypto leaders.
“The stablecoin war was never really about banks versus crypto. It is about whether the global financial system can evolve fast enough to accommodate a technology that is already here… The architecture of money is overdue for a redesign. The only question is whether we build it together or let it happen to us,” concluded Oncu.
With Senator Bernie Moreno’s (R-Ohio) end-of-May ultimatum approaching, the industry’s unified message is urgent: Congress must act now to deliver balanced, forward-looking regulation.
Author: Ruben McCarthy
The editorial team at #DisruptionBanking has taken all precautions to ensure that no persons or organisations have been adversely affected or offered any sort of financial advice in this article. This article is most definitely not financial advice.
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