On the verge of a pivotal U.S. House of Representatives hearing focused on establishing clear regulations for the crypto markets, Democratic officials have raised concerns over transparency and access to crucial technical information. According to staff insiders, they’ve faced obstacles in obtaining detailed analysis from the U.S. Securities and Exchange Commission (SEC) regarding the legislative impact of proposed crypto regulations.
Typically, the SEC provides lawmakers with technical insights and evaluations on bills like the Digital Asset Market Clarity Act, which aims to create responsible frameworks for digital assets. However, Democratic staff on the House Financial Services Committee say their recent questions about this bill were met with resistance. They were denied basic answers that had previously been available to Republican colleagues, and subject-matter experts from the SEC’s Crypto Task Force, including Landon Zinda, were not made available for briefing sessions.
Representative Maxine Waters, the ranking Democrat on the panel, has taken a direct approach by drafting a letter to SEC Chair Paul Atkins. In her correspondence, she demands a comprehensive technical and impact analysis of the crypto market structure legislation. Waters emphasizes that detailed responses are essential for Congress to evaluate whether the bill effectively addresses crypto-specific risks while fostering innovation.
The SEC responded to these concerns by stating that it provides technical assistance to any congressional member seeking information on crypto-related bills. Yet, sources familiar with the situation suggest that even SEC experts, like Zinda, were unable to answer straightforward questions during briefings.
This upcoming hearing on the Clarity Act is especially significant as it represents the industry’s core goal: establishing transparent U.S. regulations that encourage investor participation and prevent innovation from migrating overseas. The legislation follows negotiations on previous bills, like the Financial Innovation and Technology for the 21st Century Act (FIT21), and has garnered attention across multiple congressional committees, including the House Agriculture Committee, which is conducting its own hearings simultaneously.
Despite some Democratic opposition to advancing crypto legislation—particularly around certain stablecoin measures—others in the party have collaborated with Republicans to push forward key bills. Concerns remain that traditional securities firms might exploit loopholes in the legislation to sidestep existing securities laws, raising questions about regulatory adequacy and investor protection.
As the legislative process unfolds, the crypto industry continues to advocate for clear, consistent regulations—arguing that well-defined rules will unlock mainstream investment and safeguard innovation. Meanwhile, the SEC’s stance and its level of transparency remain under scrutiny, highlighting the ongoing debate over how best to regulate the rapidly evolving digital asset landscape.
