Jonathan Jachym, Kraken Global Head of Policy and Government Relations
Just weeks ago, I had the privilege of testifying before the U.S. House Financial Services Subcommittee on Digital Assets. Today, I will stand before the U.S. Senate Banking Subcommittee on Digital Assets at a critical moment for the future of financial innovation in America. The need for decisive action has never been more urgent.
It’s difficult to overstate the magnitude of the opportunity we now have to finalize U.S. market structure legislation and create a clear regulatory framework for crypto.
This is not merely about policy reform; it’s about securing our markets and driving forward innovation that can enhance financial services.
A moment for bipartisan consensus
After many years of legislative debate, we are at a moment when this 119th Congress can galvanize the necessary nonpartisan consensus to advance U.S. digital assets policy.
The long journey through industry engagement, education, hearings, legislative drafting and debate has shown significant bipartisan cooperation.
Senators Lummis and Gillibrand laid a strong foundation for meaningful bipartisan policy development in Congress with the introduction of legislation in early 2022, while last year the House passed FIT 21.
We have seen strong agreement in Congress for enacting a regulatory framework for centralized intermediaries – one that protects consumers while enabling blockchain-based innovation.
Why crypto market structure legislation matters
The current patchwork of state-level regulations and the prior Administration’s regulation by enforcement has stifled both innovation and consumer protection. A cohesive market structure framework for centralized intermediaries will pave the way for clearer, more consistent rules.
Our industry deserves a system that not only secures consumer interests but also recognizes the unique dynamics of digital assets. Our bipartisan efforts must culminate in legislation that establishes a durable framework. By doing so, we can finally eliminate the regulatory ambiguity that has long hindered progress in the crypto space.
It’s time to catch up with the rest of the world
Globally, nations are rapidly adapting to the digital revolution with balanced, forward-thinking regulations. The EU, UK, Canada – along with other major and emerging markets are all proof that effective regulation is achievable.
With the Administration, independent federal agencies and Congress working together, there is a clear and critical opportunity for the U.S. to accelerate and finalize this bipartisan legislation this year. A unified regulatory framework will not only harmonize U.S. rules with international standards but also empower U.S. regulators to engage more effectively on the global stage.
We must work together to act now
The time for Congressional action is now. Kraken is fully committed to championing a legislative framework that reconciles the need for regulatory clarity with the freedom essential for technological advancement. The future of digital assets in the United States depends on our ability to work together across party lines.
We stand ready to work with Congress, regulators, and industry partners to finalize a regulatory framework that fosters responsible innovation.
