Washington D.C. – In a move poised to reshape the digital asset landscape in the United States, the Senate Banking Committee has unveiled a draft of its highly anticipated crypto market structure bill. Released on July 22, 2025, the discussion draft, titled the "Responsible Financial Innovation Act of 2025," aims to establish a comprehensive regulatory framework for digital assets, addressing regulatory jurisdiction, investor protection, anti-money laundering (AML) obligations, and enhanced public-private coordination.
The Senate's proposal builds upon the foundation laid by the House-passed Digital Asset Market Clarity Act of 2025 (Clarity Act). The Clarity Act sought to delineate the oversight roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) and introduce a provisional registration regime for digital commodity brokers or dealers and digital commodity exchanges.
A key objective of the Senate bill is to clarify the roles of the SEC and CFTC in regulating digital assets. The draft introduces a framework for classifying digital assets based on their degree of decentralization and functional characteristics. Assets that qualify as "restricted digital assets" would fall under the oversight of the CFTC, while those with more centralized governance structures would remain subject to SEC regulation. To further bridge any potential regulatory gaps or conflicts, the bill calls for the SEC and CFTC to establish a Joint Advisory Committee on Digital Assets to provide recommendations on regulatory harmonization between the agencies.
The Senate draft proposes that "ancillary assets" should not be considered securities, and secondary transactions involving ancillary assets should not be treated as securities transactions. Additionally, gratuitous distributions of ancillary assets, meaning distributions made in exchange for no more than a nominal value, are also not considered securities transactions. The bill also clarifies the definition of "investment contract" and introduces a concept of "self-certification".
The bill also includes a comprehensive approach to combating illicit finance risks associated with digital assets. It mandates new anti-money laundering (AML) and countering the financing of terrorism regulations, directing the Secretary of the Treasury to establish a risk-focused examination and review process for financial institutions engaged in digital asset activities. Furthermore, the bill calls for the creation of a pilot information-sharing program that enables secure collaboration between government agencies and private sector entities to identify and address potential illicit finance violations and emerging risks. To strengthen these efforts, the bill establishes an Independent Financial Technology Working Group to Combat Terrorism and Illicit Financing, bringing together representatives from multiple federal agencies and private sector experts.
The Senate Banking Committee has issued a Request for Information, seeking feedback on the discussion draft. The request lists 78 questions relating to regulatory clarity and tailoring, investor protection, trading venues and market infrastructure, custody, illicit finance, banking, innovation, and preemption. The Senate Banking Committee set a deadline of August 5, 2025, for comments.
It has been widely reported that the Senate is aiming to pass a crypto market structure bill by the end of September. The Senate's version will have to be reconciled with the Clarity Act bill passed by the US House in July.
