Senate Republicans Introduce Digital Asset Market Structure Legislation

According to Cointelegraph, Republican leaders on the U.S. Senate Banking Committee have unveiled their version of legislation aimed at establishing a digital asset market structure. This move suggests potential collaboration with a bill previously passed in the House of Representatives. On Tuesday, four Republican senators, including Banking Committee Chair Tim Scott and Digital Assets Subcommittee Chair Cynthia Lummis, released a discussion draft of the proposed legislation. The tentatively titled Responsible Financial Innovation Act is said to build upon the Digital Asset Market Clarity (CLARITY) Act, which successfully passed in the House on July 17. The initiative reflects a shared goal among lawmakers to provide clear regulatory guidelines for digital assets. Scott emphasized the importance of establishing rules that cater to the evolving landscape of digital investments. Despite the House's recent success in passing three crypto bills with bipartisan support, only the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act has been signed into law by U.S. President Donald Trump. Scott and Lummis had previously expressed their intention to have the market structure bill passed by the Senate before October. The Senate and House versions of the crypto market structure legislation propose amendments to disclosure requirements under the Securities Act of 1933, highlighting the inadequacy of existing laws in regulating modern investment vehicles like digital assets. The CLARITY Act aims to foster collaboration between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in formulating rules for digital asset transactions. Additionally, the Senate's draft bill includes amendments concerning disclosures of "ancillary assets," which are digital assets not classified as securities. With bipartisan support, the CLARITY Act's progression to the Senate indicates growing momentum behind comprehensive crypto policy and a consensus on the necessity for market structure rules. However, full passage may face delays as Congress breaks for the summer. Liat Shetre, Elliptic's Vice President of Global Policy and Regulation, noted the increasing alignment on the need for such regulations. The draft bill's fate in the Senate remains uncertain, given the Republicans' narrow majority over Democrats. While more than 70 House Democrats joined Republicans to pass the CLARITY Act, any alterations to the bill's wording could ignite debates or resistance in a divided Congress.