U.S. Senate Shifts Focus to Crypto Market Structure in Regulatory Push

• The Senate draft could change how crypto exchanges and DeFi platforms are managed.
• Crypto Week will see House votes on stablecoin token oversight and CBDC restrictions.
• Lawmakers aim to protect users and help new crypto projects follow clear legal rules.

The U.S. Senate has reignited its focus on crypto market structure, setting the stage for sweeping reforms across exchanges, DeFi platforms, and digital asset custody. This shift, driven by a new draft bill and an upcoming Senate hearing, may reshape federal oversight and redefine regulatory authority between the SEC and CFTC. As the House prepares for “Crypto Week,” earlier efforts like the GENIUS Act could either align with or clash against Senate priorities, impacting investor protections, innovation, and U.S. competitiveness.

The draft, expected later this week, aims to classify digital assets clearly and establish boundaries between commodities and securities. The structure also introduces safeguards for investors and institutions alike. It incorporates parts of the 2023 Lummis-Gillibrand Responsible Financial Innovation Act and reflects themes found in the House’s CLARITY Act. Senators Tim Scott, Cynthia Lummis, Thom Tillis, and Bill Hagerty released bipartisan “crypto market structure principles” on June 24, calling for clear jurisdiction, innovation support, and targeted AML enforcement.

According to a recent report from, Ripple CEO Brad Garlinghouse is scheduled to testify at the Senate hearing, offering insight from one of the industry’s largest players. The final draft is targeted for completion by August, with a Senate vote anticipated by September, matching the White House’s timeline for faster crypto rulemaking.

Crypto Week Brings House and Senate Agendas to a Crossroads

As the Senate builds its market structure blueprint, the House is preparing for “Crypto Week,” a concentrated legislative session from July 14 to 18. Three key bills will be considered: the CLARITY Act, the GENIUS Act, and the Anti-CBDC Surveillance State Act. These efforts aim to align U.S. crypto policy, but differences in approach may raise friction between chambers.

The GENIUS Act, already passed by the Senate on June 17 with a 68–30 vote, outlines strict standards for stablecoins, including 1:1 asset backing, AML compliance, and audit rules based on issuer size. It also contains language barring the Federal Reserve from issuing a central bank digital currency.

Meanwhile, Representative Tom Emmer’s Anti-CBDC bill, which similarly blocks Fed-led digital currency development, will be voted on separately during Crypto Week. These overlapping provisions highlight the urgency of aligning agency boundaries and crypto definitions before divergent frameworks take hold.

In parallel, the House Ways and Means Oversight Subcommittee is expected to reschedule a digital asset tax policy hearing. Originally slated for this week, the session was postponed but is expected to proceed soon after Crypto Week.

Related: South Korea’s FIU Launches AML Measures Against Crypto Fraud

Investor Protections and Innovation Tools at the Core

The draft bill provided by the Senate pays attention to the protection of investors and stimulates innovation to be achieved on both institutional and decentralized platforms. It establishes asset, issuer, and custodian category items and provides regulatory certainty that has lacked in U.S. policy. Some of the important protection tools are AML provisions, reserve requirements, and redemption rights to the users. These would minimize the risk of fraud, as well as render platforms secure to both individual and corporate players.

To support innovation, the draft also includes no-action letters, regulatory sandboxes, and legal safe harbors. These elements are critical for DeFi developers to test systems while remaining in regulatory bounds.

The House legislation is basically an idea for the Senate bill that gives the primary oversight of the exchanges to the CFTC. This plan emerged to resolve the ongoing dispute with regard to jurisdiction over digital assets between the CFTC and the SEC. However, since then, Senate Democrats have started raising concerns regarding consumer protections and conflicts regarding President Donald Trump’s crypto ventures, which may weigh in on the implementing language.

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