Senate Banking Committee Chairman Tim Scott has announced a goal to pass a bill establishing a clear market structure for digital assets by September 30, 2025. This announcement, made during a "fireside chat" with Wyoming Senator Cynthia Lummis and White House crypto advisor Bo Hines on Thursday, signals a renewed push to regulate the burgeoning digital asset space in the United States. Scott emphasized the need for Congress to act on both market structure and stablecoin legislation to ensure the complete functioning of the digital asset market.
The move comes as both chambers of Congress attempt to reconcile their approaches to digital asset regulation. The House of Representatives has already advanced the Digital Asset Market Clarity Act of 2025 (CLARITY Act), which aims to establish a regulatory framework for digital asset market structure and directs the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) to implement the legislation through regulations. Senator Lummis indicated that the Senate may consider the House's CLARITY Act as a foundation for its own efforts.
Lummis also stated that she aims to release a draft of the Senate's market structure bill before the August recess, with a markup scheduled for September. This timeline aligns with Scott's goal of passing legislation by the end of September. "You're the chairman, and we will do as you wish," Lummis told Scott, underscoring her support for his leadership on the issue.
The proposed legislation seeks to address several key aspects of digital asset regulation. A central aim is to establish a clear distinction between digital asset securities and digital asset commodities, a delineation that has long been a source of uncertainty in the industry. This clarity is intended to provide predictability, enhanced legal precision, and much-needed regulatory certainty for businesses operating in the digital asset space.
Furthermore, the legislation is expected to address the regulation of centralized digital asset intermediaries. These intermediaries would be subject to registration and risk management requirements similar to those applied to other centralized intermediaries in traditional finance. Such requirements could include measures for illicit finance compliance, appropriate capital levels, custody and segregation protocols, and clear enforcement authority.
Another crucial element involves tailoring regulations to the different types of distributed ledger technology. The legislation will likely differentiate between centralized firms, decentralized finance (DeFi) protocols, and non-custodial software platforms, recognizing the varying risks and benefits associated with each. The right to self-custody of digital assets is expected to be explicitly preserved.
The push for a comprehensive market structure bill is occurring in tandem with efforts to regulate stablecoins. The GENIUS Act, which focuses on stablecoin regulation, has already passed the Senate and is awaiting consideration in the House. Senators have urged the House to act swiftly on the GENIUS Act, with President Trump reportedly keen to sign the bill into law as soon as possible.
However, the timelines proposed by Senators Scott and Lummis could potentially clash with President Trump's plans. Trump has publicly called for the House to pass the GENIUS Act and send it to his desk "ASAP." The White House had initially aimed to sign the crypto bill into law by August.
Despite these potential conflicts, the commitment from key figures in the Senate Banking Committee to finalize a market structure bill by the end of September indicates a strong desire to bring clarity and stability to the digital asset market. The proposed legislation represents a significant step towards establishing a comprehensive regulatory framework that fosters innovation while protecting consumers and ensuring market integrity.
