A Senate subcommittee hearing aimed at shaping the future of U.S. crypto regulation struggled to attract attention on June 24. Only five senators attended the session, which sought to address the market structure for digital assets.

The lack of participation spoke volumes, drawing focus to those absent rather than the discussions that occurred. Senators Cynthia Lummis, Bill Hagerty, Dave McCormick, Bernie Moreno, and Angela Alsobrooks were in attendance out of eleven committee members, leaving Lummis to question: Why is there not a greater commitment from lawmakers to establish a legal framework for crypto?

Industry Experts Weigh In, But Who’s Listening?

The hearing featured witnesses like Sarah Hammer from Wharton, who shared insights on financial stability and systemic risk. Greg Xethalis from Multicoin Capital represented investment perspectives, while Ryan VanGrack from Coinbase highlighted regulatory deficiencies. Former CFTC Chair, Rostin Behnam, emphasized the dangers of vague rules and overlapping regulatory oversight.

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The message was clear: crypto demands a comprehensive regulatory guide.

Timing and Optics Matter

The low turnout came shortly after the Senate’s approval of bipartisan stablecoin legislation, demonstrating that lawmakers can unite on digital asset concerns when motivated. Yet, the session’s lack of urgency was stark, suggesting that crypto regulation isn’t prioritized.

Lummis did point out potential scheduling conflicts, but also suggested lawmakers might hesitate due to personal or political ties to the crypto industry, which may hinder substantial progress as the House forges ahead with its own legislation.

Pressure Builds as House Advances Its Own Bill

Punching forward, the House of Representatives is set to vote on its Digital Asset Market Structure bill, which could pressure the Senate to act promptly.

Sessions that did occur underscored the importance of defining digital commodities versus digital securities. Concerns were raised regarding excessive power concentrated in one regulatory body, illustrating the desire for a balanced approach to oversight that also allows room for innovation.

Outlook for Crypto Legislation Still Uncertain

Though the hearing yielded no immediate outcomes, the scant attendance dented confidence in swift action. Key issues began to find some common ground, and as the House advances, the momentum may push the Senate to align quickly with potentially groundbreaking legislation. Failure to do so risks perpetuating the uncertain, fragmented regulatory landscape surrounding crypto.