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Journalist Eleanor Terrett reports that several top executives from cryptocurrency companies, including Coinbase, Ripple, Chainlink, Galaxy, Kraken, Uniswap and Circle, will participate in a roundtable with pro-crypto Senate Democrats this Wednesday behind closed doors.
New framework shaping up
Senator Kirsten Gillibrand will lead the conversation, which is anticipated to focus on stablecoin regulation, market structure legislation and the direction of U.S. policy for crypto. This meeting is one of the most significant cross-sector discussions that the digital asset sector and policymakers have had in recent months.
The Senate has fallen behind, especially when it comes to establishing regulatory clarity regarding which agency, the SEC or the CFTC, should regulate cryptocurrency trading and token classification, even though the House has already made strides with bills like the Financial Innovation and Technology for the 21st Century Act (FIT21).
Speaking out against the absence of a clear legal framework, executives from Coinbase and Ripple have frequently criticized the SEC’s enforcement-heavy strategy under Chair Gary Gensler. These companies might use this roundtable as a forum to advocate for a more stable and innovative regulatory framework.
What are they pushing?
Additionally, stablecoin issuers such as Circle are expected to promote comprehensive, yet fair, regulations that safeguard consumers without limiting competition. It is unclear, though, if this meeting will result in any immediate advancements. The Senate is still divided on cryptocurrency, with some senators remaining dubious of the sector in the wake of significant meltdowns like FTX.
Gillibrand’s participation, nevertheless, shows a growing bipartisan understanding that cryptocurrency is here to stay and that in the U.S., if regulations remain unchanged, there is a chance that technological leadership will be lost. Essentially, by bridging the gap between innovators and policymakers, this roundtable may open the door to more fruitful discussions in 2025.
However, the crypto market will continue to be in a state of regulatory ambiguity until specific legislation is passed, where hopes for reform clash with the realities of Washington’s sluggish political process.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team