Bipartisan Push for Crypto Regulation in USA Now Critical, Industry Leader Warns

Washington’s crypto stalemate can’t outlast Bitcoin’s next bull run.

As decentralized finance protocols notch record volumes and retail investors flood back into altcoins, U.S. lawmakers remain stuck in partisan gridlock over basic regulatory frameworks. Meanwhile, Singapore’s sandbox approach and El Salvador’s Bitcoin bonds keep eating America’s lunch.

‘The innovation train left the station—Congress is still arguing about platform tickets,’ quipped one Wall Street analyst, between sips of a $28 cold brew.

Key roadblocks persist: Democrats push for stringent consumer protections while Republicans champion innovation-friendly policies. The result? A regulatory no-man’s land where crypto exchanges operate in legal limbo and institutional money hesitates to go all-in.

‘We need clear rules yesterday,’ argues the CEO of a top-5 exchange. ‘Every month of delay pushes another blockchain unicorn offshore.’ His solution? A rare bipartisan task force—before the 2024 election cycle paralyzes progress completely.

Meanwhile, the SEC keeps filing lawsuits instead of writing rulebooks, and crypto lobbyists now outnumber oil industry reps on K Street. Some things never change.

A Call for Unified Crypto Regulation

VanGrack emphasized that the future of digital assets in the U.S. depends on clear and unified legislation. Without a comprehensive framework, he argued, the country risks losing talent, innovation, and business opportunities to other jurisdictions with more favorable regulations.

“Crypto regulation is not, and never should be, a partisan issue,” VanGrack stated in his opening remarks. “Economic empowerment, financial innovation, and customer protection are not Republican or Democratic values—they are American values.”

According to VanGrack, the absence of clear regulatory guidelines has created significant challenges for companies like Coinbase. The uncertainty forces many firms to expand operations abroad, leaving American consumers and markets behind.

Bipartisan Interest Grows in the Senate

VanGrack’s testimony was aligned with growing bipartisan momentum in Congress to address the regulatory vacuum surrounding digital assets. Senate Banking Chairman Tim Scott (R-SC), alongside Senators Cynthia Lummis (R-WY), Thom Tillis (R-NC), and Bill Hagerty (R-TN), recently introduced six guiding principles aimed at shaping new legislation for the crypto market structure.

These principles emphasize the need for consumer protection, financial innovation, and transparent trading systems—core elements that both Republicans and Democrats increasingly support.

Senator Hagerty commented on the urgency of the situation, saying, “For too long, a lack of clear regulatory authority has forced digital asset innovation beyond our borders and subjected issuers, exchanges, and developers to crippling uncertainty.”

He added that developing a “reasonable, light-touch market structure framework” could serve both the American economy and its consumers.

GENIUS Act and the Push for Progress

The hearing followed a significant milestone in U.S. crypto legislation—the Senate’s recent passage of the GENIUS Act, a bill designed to lay the groundwork for responsible digital asset regulation. The act has now moved to the House of Representatives for further consideration.

Senator Lummis, a longtime advocate for blockchain technology, highlighted the importance of timely action. “Congress must act quickly,” she said. “The success of the GENIUS Act hinges on comprehensive market structure legislation that protects consumers, establishes transparency, and creates clearly defined trading regulations.”

Lummis has consistently pushed for regulatory clarity, arguing that the U.S. cannot afford to fall behind other nations when it comes to digital innovation.

Regulatory Uncertainty Is Holding the U.S. Back

In his testimony, VanGrack stressed that the U.S. is at risk of ceding leadership in the global crypto market due to regulatory confusion. He noted that companies are increasingly forced to operate in countries with more predictable legal environments.

“Regulatory uncertainty doesn’t just carry risks—it actively holds back progress,” he warned.

Coinbase, one of the largest cryptocurrency exchanges in the United States, has frequently found itself at the center of regulatory debates. The company has repeatedly called for comprehensive guidelines that WOULD allow both startups and established firms to innovate responsibly without fear of enforcement actions based on unclear rules.

A Rare Moment of Agreement in Washington

The bipartisan tone of the hearing was a notable shift in the political atmosphere around crypto. While lawmakers have traditionally been divided on the issue, the growing consensus in favor of clear market structure legislation may indicate a turning point.

For now, both policymakers and industry leaders seem to agree on at least one thing: regulatory clarity is long overdue.

As Congress continues to debate the future of digital assets, VanGrack’s testimony may serve as a reminder that crypto is not about political ideology—but about ensuring the U.S. remains competitive, innovative, and inclusive in the digital age.