The United States Senate Banking Committee has officially introduced a long-anticipated draft bill aimed at restructuring the nation’s cryptocurrency regulatory landscape. Spearheaded by Chairman Tim Scott (R-S.C.), Senators Cynthia Lummis (R-Wyo.), Bill Hagerty (R-Tenn.), and Bernie Moreno (R-Ohio), the proposed legislation builds upon the previously passed CLARITY Act in the House of Representatives.
US Lawmakers Propose Crypto Market Structure Draft
The Responsible Financial Innovation Act of 2025 is the name of the draft, which presents a comprehensive framework on the regulation of digital assets.
JUST IN: 🇺🇸 US lawmakers released crypto market structure discussion draft. pic.twitter.com/9r4joRqXQ4
— Bitcoin Magazine (@BitcoinMagazine) July 22, 2025
It has suggested that there should be a clear distinction among various types of crypto assets, and in particular defining some of these digital tokens as so-called ancillary assets, which would not be treated as securities according to the current regulation. This could significantly impact how these assets are traded and regulated across the United States.
Crypto Market Structure to Shift Regulatory Oversight
The proposed bill explains that secondary transactions of ancillary assets would be exempted as investment contracts. Nevertheless, it also considers exceptions and considers that some of those crypto-related deals may still be classified under investments. In such instances, existing securities laws would apply with updated standards tailored for digital assets.
To support this regulatory shift, the Commodity Futures Trading Commission (CFTC) would assume a larger role in supervising crypto commodities. Meanwhile, the Securities and Exchange Commission (SEC) would be required to adapt its rules to accommodate the unique nature of blockchain-based activity while still ensuring investor protection.
The proposal also has exemptions so that certain ancillary assets do not have to meet SEC registration. Simultaneously, it clarifies the term investment contracts in order to bring them closer to the contemporary crypto-related transactions. The changes are supposed to give clarity of the law to blockchain developers, investors, and exchanges too.
Banking Rules and Disclosure Mandates Included
In addition to classifying the assets, the bill also has provisions of integrating crypto into the existing banking systems. It lets bank holding companies work on distributed ledger technologies, which is an indication of a more inclusive form of financial innovation. Moreover, the draft requires that financial institutions have new measures to identify and counter illicit use of the area of crypto.
Disclosure obligations for projects involving ancillary assets are also a key element. This is intended to improve transparency without stifling innovation. By requiring concise and accurate disclosures, the bill aims to boost investor confidence and promote responsible development in the sector.
Broader Implications for U.S. Crypto Market Structure
The release is a draft of a proposed bill and comes on the heels of the recent passage of the GENIUS Act and as the White House continues to put increasing pressure on a September deadline. They have been supported by industry leaders such as Coinbase CEO Brian Armstrong with the CLARITY Act potentially soon becoming the second major crypto-specific law after stablecoins.
Senator Cynthia Lummis noted that through this bill, the U.S. would be able to become a leader in digital finance with the rest of the world. The bipartisan draft highlights the work of the Congress toward establishing a modern, strong crypto market structure that nurtures the innovation and protects the financial system.
