Senate Republicans, led by Banking Committee Chairman Tim Scott (R-S.C.) and Digital Assets Subcommittee Chair Cynthia Lummis (R-Wyo.), along with Senators Thom Tillis (R-N.C.) and Bill Hagerty (R-Tenn.), have unveiled a framework for a crypto market structure bill.
Scott stated the framework’s principles aim to provide a foundation for negotiations, expressing hope that lawmakers will prioritize regulatory clarity over politics. The proposed bill seeks to define when cryptocurrencies qualify as commodities or securities, clarify regulatory jurisdiction, and reduce the Securities and Exchange Commission’s oversight of digital currencies.
The framework also calls for updated regulations that encourage innovation while targeting illicit financial activities. Lawmakers urged federal regulators to support “responsible innovation” and offer clear guidance confirming that many crypto activities are permissible for banks and financial institutions.
This initiative follows bipartisan momentum from last week’s Senate passage of a stablecoin regulation bill, which garnered nearly unanimous Republican support and backing from 18 Democrats. After the vote, Lummis described the stablecoin bill as a first step towards more comprehensive crypto market legislation, which she hopes to see completed this year.
In the House, a broader market structure bill has progressed through the Financial Services and Agriculture Committees.
Former President Donald Trump encouraged swift House approval of the Senate’s stablecoin bill via Truth Social.
Lummis highlighted the need for the U.S. to keep pace globally, noting that while the EU and Singapore have established clear crypto regulations, the U.S. risks losing ground. Hagerty added that the absence of clear regulatory authority has driven digital asset innovation offshore and created uncertainty for issuers and developers in the U.S.