The U.S. crypto policy debate intensified as the CLARITY Act drew sharply different reactions from lawmakers and Wall Street. Democratic Senator Ruben Gallego criticized the bill’s proposed ethics provisions and signaled plans for a counterproposal, while Goldman Sachs CEO David Solomon backed the broader legislation as a step toward clearer digital asset regulation.
Meanwhile, BitMEX, one of the earliest major cryptocurrency derivatives exchanges, announced plans to shut down after 11 years of operation.
Democrats challenge CLARITY Act Ethics provisions
The Digital Asset Market Clarity (CLARITY) Act remains at the center of Washington’s debate over how the United States should regulate cryptocurrency markets.
Senate Republicans released proposed legislative text that includes ethics restrictions designed to prevent federal officials, including the U.S. president, from issuing or sponsoring digital assets.
However, some Democrats argue that the proposed safeguards do not go far enough.
Senator Ruben Gallego strongly criticized the Republican-backed ethics language, describing the proposal to Politico in profane terms and calling it “not a serious effort.”
His criticism reflects frustration over what Democrats see as insufficient progress after months of bipartisan negotiations.
Despite the disagreement, negotiations are expected to continue.
Gallego said he plans to work with Republican Senator Thom Tillis and other lawmakers to develop alternative ethics language.
The dispute could become a significant obstacle to the CLARITY Act’s passage, particularly if the legislation requires bipartisan support to advance through the Senate.
Goldman Sachs CEO backs broader CLARITY Act
While lawmakers remain divided over the bill’s ethics provisions, the broader CLARITY Act has received notable support from Wall Street.
Goldman Sachs CEO David Solomon publicly endorsed the legislation, offering rare backing from the head of a major global bank for comprehensive U.S. crypto market structure reform.
Solomon acknowledged that the legislation is not perfect but argued that clearer rules could create a more balanced regulatory environment and support the maturation of digital asset markets.
His position highlights a growing divide within traditional finance over how crypto should be regulated.
Some banking executives have raised concerns about provisions affecting stablecoins and crypto companies, particularly rules that could allow digital asset platforms to offer rewards or yield-like incentives outside the regulatory framework applied to traditional banks.
The debate reflects a larger competitive question: how should regulators create rules for emerging crypto financial services without placing traditional banks or digital asset companies at an unfair advantage?
Bipartisan support could determine the bill’s future
The CLARITY Act seeks to establish a clearer regulatory structure for digital assets in the United States, potentially resolving longstanding uncertainty over the responsibilities of financial regulators and the legal treatment of crypto markets.
However, political disagreements remain.
Some Democrats continue to argue that stronger safeguards are necessary to address potential conflicts of interest involving government officials and crypto ventures.
With Republicans defending their proposal and Democrats preparing alternative ethics language, negotiations over these provisions could determine whether the broader legislation gains enough bipartisan support to move forward.
BitMEX to shut down after 11 years
Away from Washington, the crypto trading industry is preparing for the closure of one of its most influential early derivatives exchanges.
BitMEX will cease exchange services on September 23, 2026, at 04:00 UTC, following a strategic review by owner and operator HDR Global Trading Limited.
Users have been urged to close remaining positions and withdraw their assets before operations end.
BitMEX said customer assets would remain safe and under users’ control during the transition period.
The company did not provide a detailed explanation for the decision beyond citing its strategic review.
An exchange that helped shape crypto derivatives
Founded in 2014, BitMEX played an important role in transforming cryptocurrency derivatives into a major segment of the digital asset market.
The platform became particularly associated with leveraged Bitcoin trading and helped popularize perpetual swap contracts, which later became one of crypto’s most widely traded derivatives products.
Its closure therefore marks the end of an important chapter in crypto market history.
However, the derivatives landscape BitMEX helped create has changed dramatically.
Larger centralized exchanges now dominate much of global crypto derivatives liquidity, while decentralized perpetual trading platforms are capturing an increasing share of activity.
Decentralized derivatives gain ground
BitMEX’s exit comes as competition between centralized and decentralized derivatives platforms intensifies.
According to figures cited from CoinGecko’s Q2 2026 Crypto Industry Report, centralized exchange perpetual futures volume declined during the quarter while decentralized alternatives continued expanding their presence.
Platforms such as Hyperliquid have emerged as significant competitors in perpetual futures trading, demonstrating how sophisticated crypto trading activity is increasingly moving onchain.
This shift creates growing pressure on established centralized exchanges, particularly platforms that lack the liquidity, scale or product ecosystems of the industry’s largest players.
Crypto faces two major transitions at once
The day’s developments highlight two transformations occurring simultaneously across the digital asset industry.
In Washington, crypto is moving deeper into the traditional regulatory system as lawmakers debate comprehensive market structure rules and major financial institutions increasingly participate in the policy conversation.
At the same time, crypto’s trading infrastructure continues to evolve, with older centralized platforms facing consolidation while decentralized markets gain momentum.
The CLARITY Act debate could help define the regulatory architecture for the next phase of the U.S. digital asset industry.
BitMEX’s shutdown, meanwhile, demonstrates how quickly the competitive architecture of crypto itself is changing.
Together, the developments show an industry transitioning from its early experimental era toward a market increasingly shaped by regulation, institutional participation, consolidation and onchain financial infrastructure.
