Sen. Mark Warner said he still wants the Senate’s crypto market structure effort to move forward, even as SEC Chair Paul Atkins warned that regulatory clarity built only on agency rules can be undone.

Hearing focus on durable rules

Atkins told the Senate Banking Committee that while the SEC can write interim rules, lasting crypto policy needs Congress.

Atkins said in testimony:

“We need a firm grounding in statute so we can’t have any backsliding in the future.”

He argued that commission-made rules are not “future-proof,” even as he pursues his “Project Crypto” agenda.

Senate bill still stuck

The Digital Asset Market Clarity Act has faced fits and starts.

The report cited unresolved disputes including stablecoin rewards programs, plus Democratic concerns about staffing regulators and potential conflicts of interest involving senior officials’ business ties to crypto.

Warner, a lead Democratic negotiator, said talks haven’t been abandoned.

Warner said during the hearing:

“We want to get this done.”

He added:

“It’s got to be done safely.”

DeFi and illicit finance remain key issues

Warner said his main concern is decentralized finance and preventing illicit activity.

Warner warned:

“We’ve got to make sure that we don’t set up a regime that allows bad actors or carves out enforcement.”

Sen. Bernie Moreno, a Republican, sympathized with Atkins and blamed Congress for failing to provide laws.

Atkins reiterated:

“We do need, I believe, a good law coming out of Congress.”

A House version passed last year, and a Senate Agriculture Committee version cleared last month in a party-line vote.

A final Senate vote would require at least seven Democrats to join Republicans.