Coinbase and other CEXs push to relax Senate crypto regulatory provisions, seeking to weaken restrictions on "assets susceptible to manipulation"

Odaily reports that leading US crypto exchanges Coinbase, Kraken, and Gemini are pushing for amendments to the Senate's crypto market structure bill, seeking to delete or relax listing restrictions on "digital assets susceptible to manipulation." The clause originally required trading platforms to only list digital assets that are "not easily manipulated." The industry fears this standard could limit the ability of smaller market cap tokens to be listed on exchanges, thereby affecting liquidity and market development.

According to informed sources, the exchanges submitted revision comments to the Senate Agriculture Committee earlier this year, suggesting the removal of the relevant restrictive wording and emphasizing that the current language poses a "listing barrier" for smaller crypto assets. Under the bill's design, the Commodity Futures Trading Commission (CFTC) would gain broader regulatory authority over digital commodity markets in the future, adopting a "self-certification" mechanism used in traditional commodity markets. This would require exchanges to confirm that a product is not easily manipulated before it can be listed.

However, the crypto industry believes that digital assets differ structurally from traditional commodity derivatives, making the direct application of existing standards unreasonable and potentially stifling innovation and market access. One source said the current direction of the revision is seen as "an obvious push for regulatory easing." Meanwhile, a Coinbase policy executive stated that the industry supports stronger regulation and anti-fraud frameworks but opposes the direct transplantation of standards inapplicable to the spot market, which could affect market liquidity and consumer participation. The bill is reportedly still in the negotiation phase between two Senate committees and is expected to be further adjusted before a formal vote on the floor. (Politico)