Cryptocurrency platforms Coinbase (NASDAQ:COIN), Kraken (operating under parent company Payward), and Gemini (NASDAQ:GEMI) have urged Senate lawmakers to eliminate a specific clause from a comprehensive digital asset market structure bill. The provision in question would have restricted trading platforms from offering certain tokens deemed potentially vulnerable to market manipulation, a standard drawn from traditional commodity futures oversight.
This lobbying effort, which occurred earlier in 2026, targeted language in the legislation under development by the Senate Agriculture Committee.
According to sources familiar with the discussions, the exchanges submitted detailed red-line edits proposing the removal of requirements that would limit listings to digital assets “not readily susceptible to manipulation.”
Industry representatives argued that applying this criterion—modeled after rules used by the Commodity Futures Trading Commission (CFTC) for products like oil or agricultural futures—could inadvertently hinder the listing of smaller, lower-liquidity tokens on regulated U.S. exchanges.
Smaller crypto tokens often face a “chicken-and-egg” challenge: without initial exchange visibility and trading volume, they struggle to achieve the liquidity needed to demonstrate resistance to price swings or manipulation.
Coinbase‘s Federal Policy Director Robin Cook highlighted this dynamic, noting that while the standard works well for established futures and swaps markets, it may not translate effectively to spot crypto trading.
Importing it directly, Cook suggested, could limit innovation, restrict consumer access to emerging projects, and potentially give regulators excessive discretion over future listings.
The broader bill, often referred to in connection with the Digital Asset Market Clarity Act (CLARITY Act), aims to create a clear federal framework for the approximately $2.7 trillion crypto sector.
It would expand the CFTC’s authority over digital commodities—assets similar to Bitcoin and Ether—while assigning oversight of security-like tokens to the Securities and Exchange Commission (SEC).
The Senate Agriculture Committee advanced its portion of the measure in January on a party-line vote, but significant revisions are anticipated to secure broader bipartisan support ahead of a full Senate consideration.
Parallel negotiations continue in the Senate Banking Committee for SEC-related elements.
Proponents of the anti-manipulation language view it as a vital investor safeguard, aligning crypto oversight with longstanding practices in derivatives markets, including even prediction platforms.
Critics within the industry, however, contend that crypto‘s unique decentralized nature and spot-market characteristics warrant tailored rules rather than a direct transplant from CFTC commodity protocols.
The exchanges have emphasized their commitment to stronger overall regulation, stating in a joint response that their advocacy seeks to expand federal tools against fraud and abuse while fostering a vibrant market.
This development underscores ongoing tensions in crafting crypto policy: balancing robust protections against manipulation and risk with the need to support market growth and innovation, particularly for smaller tokens that drive much of the ecosystem’s diversity.
As negotiations progress, the outcome could influence how readily US platforms can onboard new assets, potentially affecting liquidity, competition, and the global standing of American crypto firms.
Industry professionals see it as a pivotal test of whether the final legislation will prioritize light-touch rules for spot markets or maintain stricter, derivatives-inspired guardrails.
The lobbying highlights the crypto sector’s active role in shaping its regulatory future amid a landmark push for clarity. With millions of Americans already participating in these markets, the stakes involve not only investor safeguards but also the potential for US leadership in digital finance.
