U.S. Senators Unveil Draft Bill to Regulate Crypto Market Structure

The United States senators, including Chairman Tim Scott, Subcommittee on Digital Assets Chair Cynthia Lummis, Senator Bill Hagerty, and Senator Bernie Moreno, have jointly announced the release of an initial discussion draft concerning the regulatory framework for digital asset markets. The draft addresses matters under the jurisdiction of the “Senate Banking Committee.”

According to an official announcement, the current discussion draft advances the legislative framework established by the CLARITY Act, which aims to strengthen the regulatory groundwork for digital assets.

“I’m grateful for the hard work of our House counterparts to craft smart, bipartisan legislation, and I look forward to building on their work here in the Senate. Working with President Trump, we can deliver a comprehensive, bipartisan regulatory framework for digital assets,” Chairman Scott said.

With a focus on both innovation and regulatory uncertainty, the proposal seeks to deliver the clarity needed by emerging market participants while upholding essential consumer protections.

“We cannot allow regulatory confusion to continue driving American innovation overseas. Market structure legislation will establish clear distinctions between digital asset securities and commodities, modernize our regulatory framework, and position the United States as the global leader in digital asset innovation,” Senator Lummis wrote.

Promoting Innovation with Clear Rules

Designed with input from across the industry, this legislative draft aims to create a stable and innovative digital asset environment, offering clear rules and maintaining America’s competitive position in the global marketplace.

Additionally, the discussion draft will address several significant sectors, including clarifying which crypto assets are not securities and introducing customized disclosure obligations designed explicitly for the offering, sale, or distribution of ancillary assets.

Clear Standards for Digital Asset Oversight

Furthermore, the draft mandates that the Securities and Exchange Commission (SEC) develop and implement new regulatory rules. These new rules include an exemption from SEC registration for qualifying ancillary asset offerings, specifically those that raise no more than $75 million in gross proceeds per year over a four-year period.

Additionally, the development of digital asset examination guidelines fosters public-private cooperation to enhance the detection and prevention of illicit financial activity. Ultimately, the draft provides that financial holding companies may deploy distributed ledger technologies or digital assets to engage in operations that are authorized for banks under existing legal frameworks.