US exchanges ask Senate to remove token listing restriction in Clarity Act

Coinbase, Kraken, and Gemini have asked the U.S. Senate to remove a provision in the Clarity Act that restricts token listings, Crowdfund Insider reported. The exchanges submitted an amendment seeking to delete language that would permit the listing only of cryptocurrencies that are not easily susceptible to market manipulation. This provision, aimed at curbing trading in highly manipulable tokens, is modeled on existing regulations for the commodity futures market. The industry argues that applying the standards used by the Commodity Futures Trading Commission (CFTC) for markets like crude oil and agricultural products to crypto would make it virtually impossible to list new, low-liquidity tokens. They contend that new tokens face a structural handicap, as their initially low trading volume and liquidity make it difficult to demonstrate market stability.