In a letter to the leaders of the Senate Banking Committee, the companies argued that that action by government agencies cannot by itself provide stable rules for the digital asset sector, CoinDesk reported Thursday (April 23).

The letter points to the risk of returning to “regulation by enforcement,” a common criticism of the government from the crypto industry under the administration of President Joe Biden.

More than 100 companies have signed onto the letter, CoinDesk said, including high-profile firms like Coinbase, Circle, Kraken and Ripple, plus developer groups, state blockchain associations and university chapters of Stand With Crypto.

The group listed six priorities for lawmakers to address, the report added. These include upholding consumer rewards connected to payment stablecoins, delineating oversight roles for the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), and protecting developers who create non-custodial tools.

As CoinDesk notes, other major jurisdictions, like the European Union, already have their own comprehensive cryptocurrency frameworks, and the companies warned that a lack of U.S. legislation could lead the industry to move offshore.

The Clarity Act is designed to create “durable U.S. rules” needed to support the next frontier of financial infrastructure, such as tokenized assets and decentralized exchanges, as PYMNTS wrote recently.

“A key component of the act is establishing a federal distinction between digital commodities” under CFTC oversight and securities regulated by the SEC, “which would reduce the ambiguity currently facing exchanges and banks,” that report added

While the bill passed the House of Representatives in 2025, it has stalled in the Senate amid disagreements between traditional financial institutions and crypto firms, especially around rules for stablecoin interest payments.

The White House has said that banning those yield rewards would only lift traditional lending by 0.02%, with 76% of it coming from larger lenders and the rest from community banks.

Those findings run counter to a study last year from industry group Independent Community Bankers of America (ICBA), which said community banks could lose $1.3 trillion in deposits and $850 billion in loans if stablecoin rewards were allowed.

“What is unfolding is not the end of crypto’s regulatory journey, but the end of its beginning. The U.S. is moving from a reactive posture to a proactive framework that seeks to harness innovation while maintaining financial stability,” PYMNTS wrote earlier this month.