US Lawmakers Propose Draft to Reform Crypto Market Structure

U.S. Senate banking leaders have introduced a draft bill to redefine the crypto market structure. The proposal, led by Republican Senators Tim Scott, Cynthia Lummis, Bill Hagerty, and Bernie Moreno, outlines a regulatory framework that could reshape the future of cryptocurrency in the United States.

U.S. Senate Unveils Draft to Overhaul Crypto Market Structure

The draft comes shortly after President Donald Trump signed the GENIUS Act into law. That legislation focused on stablecoins and is now complemented by this broader initiative.

The new Senate proposal mirrors the House’s Digital Asset Market Clarity (CLARITY) Act, which recently passed with bipartisan support.

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Clear Distinctions in Crypto Market Structure

A major component of the draft centers around how digital assets are classified. According to the bill, most digital assets referred to as "ancillary assets" will not be treated as securities. Transactions involving these assets will not be considered investment contracts, except under specific conditions detailed in the legislation.

This clarification allows both the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) to play complementary roles. While the CFTC would gain expanded oversight of commodity-classified digital assets, the SEC is tasked with adapting existing rules to address the nuances of crypto activity.

Senator Cynthia Lummis, a prominent voice in cryptocurrency legislation, emphasized the importance of this clarity. She stated that regulatory uncertainty must come to an end and highlighted the bill’s focus on innovation and investor protection.

Regulatory Cooperation and Public Feedback

The draft is also aimed at making crypto modernized in order to be dealt with in the traditional finance. It contains specifications concerning banking activities, disclosure of information, and anti-money laundering activities. The bill is also very comprehensive, containing self-custody rights, and decentralized structures.

Law makers are also enlisting the industry players and leaders to make further input into the law text to make it more refined. Senate Banking Committee has launched formal Request for Information (RFI) to make sure that the final version will reflect various positions of different stakeholders of the crypto currency industry.

Next Steps for Crypto Market Structure Legislation

This discussion draft marks a critical step in fulfilling the Senate’s commitment to digital asset innovation. It follows the passage of several House bills and sets the stage for coordinated legislation between chambers.

With a September deadline from the White House, Congress is expected to act swiftly to finalize the CLARITY Act. If passed, it will stand alongside the GENIUS Act as a cornerstone of the nation’s evolving digital asset policy.

The announcement indicates that there is mounting pressure in Washington to designate a controlled, albeit innovation-friendly framework of cryptocurrency in the United States.