Crypto Exchanges, Developers Urge Senate to Advance CLARITY Act

• Stacey George
• April 26, 2026
• Policy
• 0 Comments

More than 120 crypto companies, exchanges, and software developers have sent a joint letter to the Senate Banking Committee urging it to schedule a markup of the CLARITY Act, a bill that would establish clear jurisdictional lines between the SEC and CFTC for digital assets.

The letter, dated April 23, 2026, was addressed to Chairman Tim Scott, Ranking Member Elizabeth Warren, Chairwoman Cynthia Lummis, and Ranking Member Ruben Gallego. It was organized by the Crypto Council for Innovation and the Blockchain Association, with backing from Coinbase, Ripple, Circle, and Kraken among others.

The coalition warned that without legislative action, the industry risks a return to regulation by enforcement, a pattern that has driven companies offshore and created uncertainty for builders and investors alike.

Why crypto exchanges and developers want Senate action now

The push comes from two distinct but aligned groups. Exchanges like Coinbase and Kraken want a federal framework that replaces the current patchwork of state-by-state rules and enforcement-driven precedent. Software developers and DeFi builders want assurance that writing open-source code will not expose them to financial services regulation.

A Senate Banking Committee markup is the procedural step where senators debate, amend, and vote on a bill before sending it to the full Senate floor. Without a markup notice, the CLARITY Act remains stalled regardless of its bipartisan support, similar to how regulatory delays in other markets have left companies facing compliance uncertainty.

Summer Mersinger, speaking on behalf of the coalition, said: “Years of bipartisan work have brought Congress to this vital moment for digital asset market structure legislation.”

“America needs clear, comprehensive rules for digital asset markets.”

— Ji Hun Kim, via Crypto Council for Innovation

What the CLARITY Act would change for exchanges and developers

Formally designated as H.R. 3633, the Digital Asset Market Clarity Act of 2025, the bill assigns CFTC jurisdiction over digital commodities while clarifying the SEC’s authority over investment contracts involving those same assets. The goal is to end the turf war that has left token issuers unsure which regulator to register with.

For exchanges, the bill creates a tailored disclosure framework. Rather than forcing crypto platforms to comply with securities rules designed for equities, it establishes reporting requirements specific to digital asset trading. This matters for platforms navigating a landscape where major financial institutions are already entering crypto through ETFs and stablecoin products.

For developers, the stakes are arguably higher. The Senate Banking Committee’s own fact sheet states that software developers and infrastructure providers who do not control customer funds should not be treated as money transmitters. The bill also preserves self-custody protections, a key demand from the DeFi community.

The coalition’s priorities extend beyond jurisdictional clarity. They also include preserving consumer rewards tied to payment stablecoins, a provision relevant as stablecoin usage continues to grow globally, and preventing enforcement-first regulation that has characterized the SEC’s approach under recent leadership.

What happens next if the Senate Banking Committee advances the bill

Committee approval would send the CLARITY Act to the full Senate floor for debate and a vote. If passed there, it would need to be reconciled with the House version before reaching the president’s desk. Committee advancement is a meaningful milestone, but it is not the final step.

The bill already cleared the House, where it was introduced on May 29, 2025. Senate Banking Committee action would signal that both chambers are aligned on the need for a comprehensive digital asset framework, which could accelerate the reconciliation process.

For the broader market, the timing carries weight. Bitcoin traded near $78,111 with the crypto Fear and Greed Index sitting at 33, firmly in “Fear” territory. Regulatory clarity has historically been a catalyst for institutional confidence, and a stalled markup could deepen the cautious sentiment already visible across the market.

Failure to advance the bill would leave the current enforcement-driven regime in place, forcing companies to interpret vague guidance or relocate to jurisdictions with clearer rules. The coalition’s letter framed this as a competitiveness issue: without legislation, the United States risks losing crypto businesses to markets that have already adopted comprehensive frameworks.

No public response from the Senate Banking Committee to the April 23 letter has been reported. The next concrete signal will be whether the committee issues a markup notice in the coming weeks.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.