Cryptocurrency sector remains unsatiated following Trump's efforts; seeks further advancements.
The digital asset market structure bill in the U.S., notably the Senate Banking Committee’s “Responsible Financial Innovation Act of 2025” and the House-passed CLARITY Act, is making significant strides towards creating a comprehensive regulatory framework. This framework aims to clarify the jurisdiction between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), enhance investor protections, and bolster Anti-Money Laundering (AML) and public-private coordination efforts.
Key developments and current status: - The Senate Banking Committee released a discussion draft in July 2025 that introduces a dynamic classification system for digital assets based on decentralization and functionality. This system assigns “restricted digital assets” to CFTC oversight and more centralized assets to SEC regulation, with provisions for assets to migrate between regimes as they evolve. - The House-passed CLARITY Act proposes three categories: Digital Commodities (under CFTC), Digital Asset Securities (under SEC), and Permitted Payment Stablecoins (defined under the GENIUS Act). It also creates new intermediary categories such as digital commodity exchanges, brokers, and dealers. - The President’s Working Group on Digital Asset Markets in late July 2025 released a report supporting a clear, fit-for-purpose regulatory system designed to foster innovation, ensure investor protection, and strengthen U.S. leadership in digital financial technology.
Key concerns and debates surrounding the bill’s passage include: - Jurisdictional clarity: There is ongoing debate about drawing clear boundaries between SEC and CFTC oversight, especially given the mixed characteristics of many digital assets and the lifecycle changes in decentralization. The proposed frameworks aim to resolve this but must balance regulatory certainty with flexibility. - Innovation vs. regulation balance: Stakeholders want regulation that prevents fraud and abuse without stifling innovation. The bill’s dynamic classification approach and encouragement of formal rulemaking or informal guidance aim to address this tension. - Bipartisan support and amendments: While some Democrats and Republicans in the Senate show openness to the bill, negotiations over amendments and revisions are likely before final passage. Tim Scott noted at least 12 Democrats are open to the crypto market structure bill as of August 2025, indicating potential for bipartisan progress. - Anti-money laundering and investor protections: The bill strengthens AML rules and focuses on enforcement of offenses like fraud, manipulation, and failure to segregate customer assets, which some industry participants view as critical but possibly burdensome.
In summary, the digital asset market structure legislation in 2025 is making significant progress with bipartisan interest, aiming to establish a clear yet flexible regulatory framework that reconciles SEC and CFTC roles. The debates center on jurisdiction, innovation impact, regulatory design, and enforcement measures, with Congressional committees and the administration actively shaping the final form.
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The crypto industry is launching a fresh lobbying push to lock in its early victories, with the market structure bill being a key focus. The stakes are especially high for crypto exchanges, which currently must comply with contrasting state regulatory frameworks. Coinbase and Kraken, two of the biggest crypto exchanges, are backers of Stand With Crypto, an advocacy group enlisting partners for a "Day of Action" to lobby lawmakers for the market structure bill.
References: [1] CoinDesk. (2025). Senate Banking Committee Releases Digital Asset Market Structure Bill Discussion Draft. [online] Available at: https://www.coindesk.com/policy/2025/07/22/senate-banking-committee-releases-digital-asset-market-structure-bill-discussion-draft/
[2] CoinDesk. (2025). House Passes CLARITY Act, Advancing Crypto Regulatory Framework. [online] Available at: https://www.coindesk.com/policy/2025/06/08/house-passes-clarity-act-advancing-crypto-regulatory-framework/
[3] CoinDesk. (2025). White House Report Supports Digital Asset Regulatory Framework. [online] Available at: https://www.coindesk.com/policy/2025/07/26/white-house-report-supports-digital-asset-regulatory-framework/
[4] CoinDesk. (2025). Tim Scott: 12 Democrats Open to Crypto Market Structure Bill. [online] Available at: https://www.coindesk.com/policy/2025/08/09/tim-scott-12-democrats-open-to-crypto-market-structure-bill/
[5] CoinDesk. (2025). Crypto Industry Fears Loss of Trump-Era Gains Under Future President. [online] Available at: https://www.coindesk.com/policy/2025/07/27/crypto-industry-fears-loss-of-trump-era-gains-under-future-president/
Business and finance officials in the crypto industry are launching a lobbying push to support the digital asset market structure bill, with key stakeholders such as Coinbase and Kraken backing an advocacy group called Stand With Crypto. This push aims to ensure that the bill's early victories are locked in, particularly for crypto exchanges that currently operate under contrasting state regulatory frameworks (technology, business, politics, general-news).
The on-going debates surrounding the bill's passage emphasize the need for a clear yet flexible regulatory framework that reconciles the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) while encouraging innovation and investor protection (business, finance, politics). Achieving this balance remains a central focus for both Congressional committees and the administration (politics, general-news).
