‘Political animal’ taking shape in latest US crypto legislation

Legal expert says the market structure discussion draft is a good start, but politics are always going to matter

article-image

Phil Pasquini/Shutterstock modified by Blockworks

share

When it comes to getting crypto legislation off Capitol Hill and onto the president’s desk, politics still carries weight, former SEC Special Counsel Coy Garrison said this week. 

During a webinar Thursday sponsored by crypto advocacy group Global DCA, Garrison, who now works as a partner at Steptoe & Johnson LLP, said the current market structure discussion draft is a good starting point. But Republicans are going to need to get Democrats on board. 

“This is very much a political animal, as all legislation is,” Garrison said. 

The legislation was proposed by two House Republican Committee leaders, Patrick McHenry of the Financial Services Committee and Glenn Thompson of the Agriculture Committee. It’s a working draft, Garrison said, and there are some major sections that require ironing out. 

“Chairman McHenry of the House Financial Services Committee cares deeply about crypto, [he] cares deeply about providing clear rules of the road, on one hand,” Garrison said. “On the second hand, I think, not only in this context, but in many other contexts, he’s deeply concerned about SEC Chair Gensler’s approach to regulation.” 

Thursday’s webinar came shortly after Garrison appeared before the House Financial Services Committee to testify on the state of the crypto industry and the future of policy. His remarks were focused on why Congress needs to act, a point of contention with which the industry has become increasingly frustrated. 

The strong parts of the bill include how it establishes a path forward for token issuers to register, Garrison said, a key issue exchanges and crypto companies have brought forward. 

It also makes the disclosure requirements appropriately clear and strict, ensuring regulators will have adequate information about a token’s economics and distribution plan. 

The bill also “requires the SEC to get in the game with respect to secondary trading of digital assets,” Garrison said. “That’s just been a complaint for a long time; the SEC is refusing to write rules that acknowledge the benefits of a technology.” 

The bill has not yet been formally introduced, and it’s likely that lawmakers will wait on bipartisan support before bringing it forward to the floor. 

“I think the chance for this bill to become law is certainly not great, but with that being said, crypto legislation addressing market structure in this Congress, this is it,” Garrison said.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

🚀 Build What’s Next — Permissionless IV Hackathon Join us June 22–23 in Brooklyn for the Permissionless IV Hackathon — a 36-hour sprint hosted by Cracked Labs and Blockworks where top builders turn ideas into real products. Come to launch, not just […]

recent research

Research Report Templates (10).png

Research

Kamino has evolved into a full-stack asset scaling suite with V2: unlocking new markets, improving capital efficiency, and catering to various risk profiles. We believe it is best positioned to become the credit backbone of Solana as the ecosystem matures. Simply put, KMNO remains our highest-conviction bet in the Solana ecosystem. This report lays out our thesis.

article-image

Bybit’s Byreal, Binance Alpha and Coinbase’s DEX integrations

article-image

This isn’t the worst hack to ever hit Mt. Gox, but it could be the most entertaining

article-image

Crossover’s CEO discusses institutional interest and how over-the-counter (OTC) trading has picked up in crypto

article-image

Sponsored

This collaboration signifies a major leap forward in expanding the reach and utility of Web3 gaming within the vibrant Asian market

article-image

Asymmetric information is threatening crypto the same way it once threatened equities. Disclosure might be the fix.

article-image

Rate cuts drift into Q4 limbo as markets pretend everything’s fine