Coinbase, Kraken, and Gemini Jointly Request Removal of 'Not Readily Susceptible to Manipulation' Listing Clause in Crypto Bill
Coinbase, Kraken, and Gemini submitted amendments to the U.S. Senate Agriculture Committee, requesting the removal of the clause in the crypto market structure bill that states only tokens that are 'not readily susceptible to manipulation' may be listed.
The three companies believe this clause would significantly increase the difficulty of listing small-cap, low-liquidity tokens and could be used by future CFTC chairs as a tool for tightening regulation.
They aim to create a regulatory framework more suitable for the spot crypto market while maintaining market protections. The current draft grants the CFTC broad powers over the spot markets for digital commodities like Bitcoin and Ethereum.
Source: Public Information
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The three exchanges have previously coordinated their positions multiple times during the advancement of the CLARITY Act. This joint amendment continues their opposition to a one-size-fits-all strict standard, focusing on preventing small tokens from being collectively restricted from listing while leaving flexible space for actual enforcement after the CFTC is empowered.
In terms of capital pathways, the exchanges hope to retain the autonomy to list small-cap assets to maintain overall trading volume and fee income, shifting resources from responding to potential delisting waves to liquidity incentives and institutional product development. The motivation is to avoid excessive concentration of head assets leading to a decline in platform income while locking in broader market participation before spot regulation is implemented.
Similar to the flexible handling of low-liquidity contracts in traditional futures markets, and the adjustments in listing strategies by several platforms in 2025 due to similar regulatory pressures, the current U.S. crypto spot regulation is transitioning from strict control of commodity attributes to a practical market framework.
Essentially, this is a regulatory change: removing this clause would shift pricing power from a potential strict enforcement tool to the exchanges' autonomous judgment, with the mechanism aimed at preventing the vague standard of 'readily susceptible to manipulation' from stifling innovation and liquidity, allowing capital to be efficiently allocated across a broader token market rather than being forced into a concentration of head assets.
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In trying to protect everyone, it often ends up directly blocking small assets.
The stricter the regulation, the smaller the survival space for small-cap projects, leading to greater monopolization by head assets.
True market vitality comes from leaving breathing space for low-liquidity assets.