Crypto discussion labeled generational, not partisan, by Senator Moreno
The Senate held a landmark hearing on U.S. crypto market regulation on July 9, 2025, with the Banking, Housing, and Urban Affairs Committee presiding. The discussion centred around the need for clear and comprehensive regulations to support innovation, protect consumers, and combat money laundering in the rapidly evolving digital asset sector.
Blockchain Association CEO Summer Mersinger urged lawmakers to adopt tailored rules and streamlined registration paths for digital assets. Mersinger highlighted the importance of moving away from the current fragmented regulatory patchwork, which she argued is stifling innovation, confusing entrepreneurs, and leaving consumers unprotected. She emphasised the need for modern rules that acknowledge the decentralised, software-driven nature of blockchain ecosystems, and for streamlined registration paths specific to digital assets.
Ripple CEO Brad Garlinghouse criticised the current system as a "legal minefield" for digital asset firms, echoing Mersinger's concerns. Chainalysis CEO Jonathan Levin detailed how investigators used blockchain data to freeze $225 million linked to an international romance-scam ring, underscoring the potential for real-time crime detection with blockchain's transparency. Levin endorsed "common-sense measures" that extend know-your-customer standards to liquidity pools and cross-chain bridges.
Committee Chairman Tim Scott emphasised the importance of giving innovators clarity and investors protection in digital asset regulations. He also highlighted the need for anti-money laundering obligations to apply to decentralised platforms, mixers, and privacy-enhancing tools. There was broad consensus among the high-profile witnesses, which included Mersinger, Levin, Dan Robinson, Garlinghouse, Timothy Massad, and Richard Painter, that consumers deserve the same baseline protections they enjoy in equities and banking.
However, concerns about regulatory uncertainty driving talent and investment overseas were also raised. Senator Bernie Moreno suggested that resistance to digital assets may stem from generational divides, not political affiliations. Moreno argued that lack of humility and understanding among older lawmakers who are unfamiliar with the technology has slowed progress and made it harder for Congress to engage meaningfully with a rapidly evolving financial ecosystem.
Deciding whether the SEC, the CFTC, or a new bureau should police digital markets could spark turf battles. Mersinger called for "safe custody of funds" and an outright ban on undisclosed rehypothecation. Massad agreed, adding that regulators should have emergency authority to freeze assets tied to ransomware or terror finance. Ranking Member Elizabeth Warren warned about the risks of crypto fraud and potential regulatory loopholes that could let traditional companies evade securities laws.
The hearing concluded with a call for action to establish a regulatory framework that supports innovation, protects consumers, and combats financial crime in the digital asset sector. The U.S. risks losing its global leadership in financial and technological innovation to other jurisdictions with clearer and more supportive policies if it fails to act.
- The blockchain industry advocates for tailored regulations to address money laundering, protect consumers, and foster innovation in the rapidly evolving digital asset sector, as highlighted by the CEOs of the Blockchain Association and Ripple at the Senate hearing on crypto market regulation.
- The need for comprehensive digital asset regulations that Balance innovation with consumer protection and anti-money laundering obligations is crucial, with broad consensus among high-profile witnesses, including CEOs from the Blockchain Association, Ripple, and Chainalysis, underscoring the importance of this issue for the future of finance, business, politics, market structure, and general-news.
