Coinbase, Kraken, and Gemini Lobby Congress To Remove Anti-Manipulation Clause From Digital Assets Bill

Coinbase, Kraken, and Gemini are lobbying Congress to remove a provision from a digital assets bill that would require exchanges to list only cryptocurrencies deemed “not readily susceptible to manipulation,” according to a Politico report cited by Cryptonews.net.

“Source: Faryar Shirzad Last week, two US senators announced a compromise deal on stablecoin yield between representatives of the crypto and banking industries that could allow the CLARITY Act to advance in the banking committee”

Cointelegraph

Politico reported that the exchanges’ red-line edits were aimed at scrapping the anti-manipulation language after the Senate Agriculture Committee voted in January to advance the legislation.

Cointelegraph

The exchanges argued the clause is overly broad and could effectively bar them from listing smaller tokens with lower trading volumes, where proving the absence of manipulation risk is inherently difficult.

Politico said the bill is expected to establish a broad, new framework for regulating the roughly $2.7 trillion crypto market as it moves toward a full Senate vote.

Cryptonews.net said the lobbying effort is intended to expand regulatory clarity rather than weaken investor protections, while warning the wording could stifle innovation and limit consumer access to emerging digital assets.

Politico said the exchanges’ central concern is that the anti-manipulation provision would make it harder for them to attest that smaller tokens traded less frequently—and at risk of wild price moves—aren’t at risk of manipulation.

The article contrasted the proposal with the Commodity Futures Trading Commission’s existing approach, noting the CFTC has long required exchanges seeking to list products tied to oil, corn and other commodities to “self-certify” they can’t be easily manipulated or artificially inflated.

Cryptonews.net

Politico quoted Coinbase Federal Policy Director Robin Cook describing the issue as a “chicken-and-egg problem,” saying “Effectively, how can a token attract enough trading volume and interest to not be a risk for manipulation without being listed on an exchange.”

Cook told Politico, “We strongly support the readily susceptible to manipulation standard in traditional futures and swaps markets,” while arguing the exchanges are trying “to make sure that we’re not inadvertently hamstringing the agency, the industry [and] consumers.”

Politico also reported that a Gemini spokesperson did not respond to requests for comment, while Coinbase and Kraken spokespeople shared a joint statement with Gemini about working with Congress for comprehensive federal oversight.

Cointelegraph reported that Coinbase’s US policy vice president, Kara Calvert, said the exchange expected a markup in the banking committee by next week.

“Skip to Main Content Exclusive Crypto giants pushed to ease rules on risky assets in Senate bill Coinbase, Kraken and Gemini suggested earlier this year that lawmakers scrap a provision barring the listing of certain digital assets at risk of manipulation”

Politico

Cointelegraph also said White House crypto adviser Patrick Witt stated the administration was aiming for a July 4 deadline for the bill to pass the House after a June Senate vote.

Politico described how the Senate Agriculture Committee’s January action advanced the legislation and how the crypto industry’s priorities diverge from longstanding regulatory practices, including the CFTC’s self-certification model.

In its joint statement, Coinbase, Kraken, and Gemini told Politico that “Millions of Americans are participating in digital asset markets without the federal regulatory protections they deserve,” and said their legislative engagement aimed at “expanding oversight, not limiting it.”

Politico quoted another person familiar with the behind-closed-doors process saying the edit was “a very large walk back” from earlier drafts, underscoring that the outcome of the legislative battle over the manipulation clause remains uncertain.