Senate Banking Chairman Tim Scott, R-S.C., Subcommittee on Digital Assets Chair Cynthia Lummis, R-Wyo., Sen. Thom Tillis, R-N.C., and Sen. Bill Hagerty, R-Tenn., are spearheading the efforts.
“These principles will serve as an important baseline for negotiations on this bill, and I’m hopeful my colleagues will put politics aside and provide long-overdue clarity for digital asset regulation,” Scott said in a statement.
According to the framework, the bill will define when crypto is a commodity or a security, clearly delineate jurisdiction among regulators and lighten the Securities and Exchange Commission’s regulation of digital currencies, among other stipulations.
The principles also highlight the need for modernized regulations that foster innovation and target illicit finance measures.
The lawmakers also called for federal regulators to take “common-sense steps to respond to responsible innovation” and provide “clear guidance affirming that many crypto-related activities are permissible for banks and other financial institutions.”
Their effort comes as lawmakers seek to build on bipartisan progress made last week, when the Senate passed a bill regulating stablecoins. That measure saw support from nearly all Republicans and 18 Democrats.
Speaking on the Senate floor after that vote, Lummis said the stablecoin bill is “only the first step,” urging lawmakers to complete work on a more comprehensive market structure bill this year, according to CNBC.
A House version of the broader market structure legislation advanced through two committees earlier this month — the Financial Services Committee and the Agriculture Committee.
Meanwhile, former President Donald Trump weighed in on Truth Social, writing that the House should move “LIGHTNING FAST” on the Senate’s stablecoin bill.
Lummis emphasized the need for the U.S. to keep pace with global efforts.
“America desperately needs digital asset legislation that promotes responsible innovation and protects consumers,” Lummis said. “While the European Union and Singapore have established clear regulations, the U.S. continues to sit on the sidelines while the digital asset industry seeks greener pastures. That changes today.”
Hagerty added: “For too long, a lack of clear regulatory authority has forced digital asset innovation beyond our borders and subjected issuers, exchanges, and developers to crippling uncertainty. By working towards a reasonable, light-touch market structure framework, we can help bolster our nation’s economy and protect American consumers.”
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