Clear Rules for Crypto Market Participants

On December 11, an important hearing will take place in the U.S. Senate, where the heads of the largest American banks — Bank of America, Citigroup, and Wells Fargo — will appear before lawmakers to discuss the CLARITY bill aimed at regulating the cryptocurrency market. This bill is considered one of the key steps toward establishing clear rules of the game for crypto market participants, which has grown significantly in recent years and attracted the attention of both institutional and retail investors.

The main objectives pursued by bankers during the hearing include:

1. Prohibition of interest payments on stablecoins — financial institutions believe that the current practice, in which crypto platforms offer yields on stablecoin deposits, creates an unfair advantage compared to traditional banks and may pose risks to financial stability.
   
   
   
2. Creating a level playing field with crypto companies — banks advocate for unified regulation so that traditional financial organizations and new digital platforms operate under the same conditions, without privileges or gaps in the law.
3. Strengthening measures against illegal cryptocurrency use — including money laundering, terrorism financing, and tax evasion. Banks consider it necessary to enhance control over crypto operations to protect the financial system and reduce risks for investors.

In parallel with preparing for the banks’ testimony, U.S. senators continue closed-door negotiations about which regulator will oversee crypto assets — the SEC or CFTC. This question is extremely important, as it determines not only supervision of exchanges and platforms but also disclosure standards, capital requirements, and rules for crypto-based investment products. So far, both commissions — the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) — show interest in regulating the crypto market, but no final decision has been made.

Experts note that the outcome of the hearings and the final decision on the allocation of oversight functions could significantly impact the market:

• For crypto companies, stricter SEC oversight may mean increased reporting requirements and compliance rules similar to stock markets.
  
  
  
• Transferring oversight to the CFTC could create a more flexible environment for derivatives and trading platforms, but with a focus on preventing manipulation and risks for investors.
• Decisions on prohibiting stablecoin payouts and unifying competition rules will directly affect both institutional and retail market participants, potentially leading to capital redistribution and changes in the strategies of major crypto players.
  

Thus, the December 11 hearing will become an important benchmark for the entire U.S. crypto market, where the interests of major banks, lawmakers, and the crypto industry will collide. How the CLARITY bill is implemented will determine the further formation of rules, the stability of the financial system, and opportunities for innovation in digital assets.