Coinbase and other CEXs push to relax Senate crypto regulatory provisions, calling to weaken limits on "easily manipulated assets"

Odaily reports that U.S. leading crypto exchanges Coinbase, Kraken, and Gemini are pushing for revisions to the Senate's crypto market structure bill, seeking to remove or relax restrictions on listing "digital assets susceptible to manipulation." The original clause requires trading platforms to only list digital assets that are "not easily manipulated." The industry worries that this standard could limit the ability of small-cap tokens to get listed on exchanges, thereby affecting liquidity and market development.

Sources say the exchanges submitted revision suggestions to the Senate Agriculture Committee earlier this year, recommending the removal of relevant restrictive language and emphasizing that the current wording could pose a "listing barrier" for small crypto assets. Under the bill's design, the U.S. Commodity Futures Trading Commission (CFTC) would gain broader regulatory authority over the digital commodity market in the future, adopting a "self-certification" mechanism from traditional commodity markets that requires exchanges to confirm a product is not easily manipulated before listing it.

However, the crypto industry believes that digital assets differ structurally from traditional commodity derivatives, and simply applying existing standards is unreasonable, potentially stifling innovation and market access. One source said the current direction of revisions is seen as an "obvious request for regulatory easing." A Coinbase policy executive stated that the industry supports stronger regulation and anti-fraud frameworks but opposes directly transplanting standards that are not suitable for the spot market, as this could affect market liquidity and consumer participation. The bill is reportedly still being negotiated between two Senate committees and is expected to undergo further adjustments before being formally submitted for a full chamber vote. (Politico)