Republicans Double Down on Crypto Legislation
Senate Republicans have released a draft crypto market structure bill, signaling the next phase of Washington’s push to bring order to the digital asset economy. The proposed law, dubbed the Responsible Financial Innovation Act, was introduced by Senate Banking Committee Chair Tim Scott and Digital Assets Subcommittee Chair Cynthia Lummis. The duo says it “builds on” the CLARITY Act, which passed the House last week with bipartisan support.
The move comes just days after three major crypto bills cleared the House. Of those, only the GENIUS Act—focused on stablecoin oversight—has been signed into law by President Donald Trump. The market structure bill now becomes the Senate’s centerpiece effort, with Scott and Lummis targeting final passage before October.
Senate vs. House Crypto Frameworks
The Senate version of the bill borrows key elements from the CLARITY Act, including changes to the Securities Act of 1933. Both chambers agree that current laws are outdated for managing digital assets, particularly when it comes to tokens that straddle the line between securities and commodities.
One notable addition in the Senate draft is language around “ancillary assets”—a classification for digital assets that aren’t considered securities but still require oversight. This move could help resolve the long-standing jurisdiction battle between the SEC and the CFTC, encouraging more collaboration between the agencies to regulate crypto transactions.
CLARITY’s Momentum Meets Senate Gridlock
Despite the bill’s momentum, passage in the Senate is far from guaranteed. While Republicans hold a slim majority, any proposed changes to the bill’s language could trigger heated debates—especially as Congress prepares for its summer recess.
In the House, over 70 Democrats crossed the aisle to support the CLARITY Act, showing signs of a political thaw on digital assets. However, any deviation from the original bill could alienate key swing votes or invite amendments that stall progress.
The Senate’s draft bill is still in the “discussion” phase, meaning the final language remains in flux. But the timing is deliberate—Republicans are banking on Trump’s pro-crypto stance and the industry’s growing voter base to carry the effort through.
Will This Finally Settle the Crypto Rules War?
If passed, this would mark a historic shift in U.S. digital asset policy, creating formal guardrails for exchanges, token issuers, and investors. It could also reduce regulatory uncertainty, which crypto companies have long claimed is a barrier to innovation and investment.
But skepticism remains. Crypto critics like Senator Elizabeth Warren have previously warned that under-regulated legislation could expose markets to fraud, volatility, and systemic risk. Whether this latest draft strikes the right balance—or faces more political crossfire—will be determined in the weeks ahead.
For now, the crypto industry has something it hasn’t seen in years: momentum on both sides of Capitol Hill.
