Crypto Giants Advocate for Eased Regulations on Risky Assets in Senate Digital Assets Bill
By Declan Harty and Jasper Goodman
May 8, 2026
WASHINGTON — Leading cryptocurrency exchanges including Coinbase, Kraken, and Gemini are pushing lawmakers to relax certain regulatory requirements in a landmark digital assets bill currently under consideration in the Senate. According to a copy of their proposed red-line edits obtained by POLITICO, the companies want to remove a provision that would restrict trading platforms to listing only those digital assets considered “not readily susceptible to manipulation.”
The suggested changes come amid the Senate Agriculture Committee’s ongoing efforts to craft comprehensive legislation aimed at establishing a broad regulatory framework for the approximately $2.7 trillion crypto market. The provision in question requires crypto exchanges to certify that tokens they list cannot be easily manipulated, a standard similar to what the Commodity Futures Trading Commission (CFTC) currently imposes on futures and commodity contracts.
Concerns Over Listing Smaller Tokens
Industry insiders familiar with the matter, who spoke on condition of anonymity due to the sensitive nature of negotiations, explained that the language could hinder exchanges’ ability to list smaller or less frequently traded tokens. These tokens often experience higher price volatility, making it difficult to attest they meet the anti-manipulation criteria.
The three major exchanges argue that crypto tokens differ significantly from the derivatives overseen by the CFTC, such as those linked to oil or corn. They caution that the current language could be used disproportionately by future regulators intent on cracking down on certain digital assets or platforms.
“It was a very large walk back from earlier drafts of the bill,” one source said. “They obviously want a light-touch regulation.”
Industry Push for Tailored Rules
Representatives from Coinbase and Kraken released a joint statement alongside Gemini emphasizing their commitment to federal oversight. The statement highlighted the industry’s longstanding efforts to work with Congress to establish robust federal supervision, including granting the CFTC new capabilities to combat fraud, manipulation, and abuse in digital asset markets.
“Millions of Americans are participating in digital asset markets without the federal regulatory protections they deserve,” the companies said. “Every element of our legislative engagement has been aimed at changing that — by expanding oversight, not limiting it.”
Coinbase’s Federal Policy Director Robin Cook framed the debate as a “chicken-and-egg” problem: smaller tokens struggle to attract enough trading volume to be deemed less susceptible to manipulation before being listed on exchanges.
“We strongly support the ‘readily susceptible to manipulation’ standard in traditional futures and swaps markets,” Cook said. “What we’re trying to do here is make sure that we’re not inadvertently hamstringing the agency, the industry, and consumers by importing a standard that doesn’t make sense for spot crypto.”
He added, “We want to make sure consumers are protected with a standard built for spot trading.”
Legislative Context and Next Steps
The exchanges’ proposed edits were part of numerous suggestions submitted to members of the Senate Agriculture Committee, which oversees the CFTC and is spearheading half of the digital assets market structure legislation. This legislation grants the CFTC unprecedented authority over digital commodities, such as bitcoin and ether, which it currently cannot directly regulate.
The Agriculture Committee advanced its portion of the bill along party lines in January, but the legislation is anticipated to undergo significant revisions to secure Democratic support before reaching the Senate floor.
Also involved is the Senate Banking Committee, responsible for the bill’s provisions regarding the Securities and Exchange Commission (SEC), the other key regulator tasked with overseeing digital assets. Sources indicate that crypto exchanges are actively lobbying Banking Committee members for modifications that would alleviate concerns about listing smaller tokens. The committee is expected to mark up its portion of the bill in the near future.
Senate Agriculture Chair John Boozman’s office declined to comment on the industry’s suggested edits.
As Congress works toward comprehensive regulatory clarity for the rapidly evolving crypto sector, the unfolding negotiations reveal the delicate balance lawmakers seek to strike between consumer protections and fostering innovation.
Filed under: CFTC, Finance & Tax, Cryptocurrency