Republican Senate Banking Committee Chair, Tim Scott, in collaboration with Senators Cynthia Lummis, Bill Hagerty, and Bernie Moreno, has revealed a discussion draft of a cryptocurrency market structure bill. This initiative follows closely in the wake of a related bill that was recently approved by the U.S. House of Representatives.
The Senate Republicans’ proposed legislation aims to build upon the groundwork laid by the House-passed Clarity bill. The lawmakers also announced a request for information on Tuesday, emphasizing the importance of this development for the cryptocurrency sector.
“Our discussion draft embodies a thoughtful, balanced strategy that provides our innovators with the clarity they require while also ensuring strong consumer protections,” Lummis remarked. “We must put an end to the regulatory ambiguity that is currently driving American innovation overseas.”
Last week, the House garnered Democratic support to pass the Digital Asset Market Clarity Act with a 294-134 vote. The House’s comprehensive approach towards regulating the cryptocurrency industry involves creating a regulatory framework through the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission.
The Clarity Act also necessitates that digital asset companies provide retail financial disclosures and separate corporate and customer funds. Cryptocurrency advocates assert that clear regulations are vital to safeguard consumers and foster innovation.
Senator Scott expressed gratitude for the bipartisan efforts of their House counterparts and expressed anticipation to build upon their work in the Senate. He added, “In collaboration with President Trump, we can establish a comprehensive, bipartisan regulatory framework for digital assets.”
The draft released on Tuesday seeks to define an “ancillary asset” to clarify which digital assets are not securities. It also directs the SEC to adapt existing regulations to digital asset activities.
Earlier, Senators Scott, Lummis, and others had established principles and set a deadline of September 30 to regulate market structure, a task deemed challenging due to the industry’s complexity compared to the recently signed legislation regulating stablecoins.
Disclaimer: The Block is an independent media outlet that provides news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block operates independently to deliver objective information about the crypto industry. This article is intended for informational purposes only and does not constitute legal, tax, investment, financial, or any other kind of advice.
