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Senate Banking Committee leadership is accelerating efforts to pass comprehensive legislation on digital asset market structure following the approval of the GENIUS stablecoin bill.
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US Senator Tim Scott has set an ambitious deadline to enact market structure reforms by the end of September, signaling a focused legislative push on crypto regulation.
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According to COINOTAG, Senator Cynthia Lummis emphasized the urgency, stating she would be “extremely disappointed” if both the GENIUS Act and market structure legislation fail to pass before 2026.
Senate leaders aim to finalize digital asset market structure legislation by September, following the GENIUS stablecoin bill, marking a pivotal moment for US crypto regulation.
Senate Sets September Deadline for Digital Asset Market Structure Legislation
The Senate Banking Committee, led by Senator Tim Scott, is prioritizing the passage of a digital asset market structure bill to complement the recently passed GENIUS stablecoin legislation. Scott’s commitment to passing this legislation by September 30 reflects a strategic effort to establish a clear regulatory framework for cryptocurrencies and digital assets in the United States. This move is designed to enhance market integrity and investor protection while fostering innovation within the crypto ecosystem.
The proposed legislation aims to delineate regulatory authority between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), addressing longstanding ambiguities that have challenged digital asset companies. By clarifying which digital assets qualify as securities, the bill seeks to reduce legal uncertainties and promote compliance among market participants.
Collaboration and Legislative Strategy Between Senate and House
Senator Cynthia Lummis has expressed strong support for the Senate’s timeline, underscoring the necessity of passing both the GENIUS Act and the market structure bill before 2026. While the GENIUS Act has cleared the Senate and awaits House consideration, the market structure bill has yet to be scheduled for a floor vote in either chamber. Lummis indicated that the Senate might draw from the House’s Digital Asset Market Clarity Act (CLARITY Act) to draft a cohesive and effective market structure framework.
The CLARITY Act, which recently advanced out of committee in the House, proposes clearer guidelines for digital asset classification and regulatory oversight. However, remarks from Scott and Lummis suggest that Senate efforts could take precedence, potentially shaping the final legislative language and timeline. This coordination between chambers is critical to ensuring that the US crypto regulatory environment evolves in a balanced and comprehensive manner.
White House and Legislative Timelines: Aligning Crypto Regulatory Goals
Initially, the White House anticipated signing the GENIUS stablecoin bill into law by August, reflecting executive support for advancing crypto legislation. However, the Senate’s September target for the market structure bill indicates a phased approach to regulatory reform. Senator Lummis mentioned plans to draft the market structure legislation before the August recess, aiming for markup sessions in September, which aligns with Scott’s deadline.
This timeline highlights the administration’s and Congress’s shared interest in establishing a robust regulatory framework that can support market stability and innovation. The collaboration between Senate leaders and the White House crypto adviser Bo Hines during recent discussions underscores the coordinated effort to address regulatory gaps and foster a secure environment for digital asset growth.
Implications for the US Crypto Market and Industry Participants
Passing clear and comprehensive market structure legislation will have significant implications for crypto exchanges, stablecoin issuers, and investors. By defining regulatory boundaries and compliance requirements, the legislation aims to reduce fragmentation and uncertainty that have historically hindered market development. This clarity is expected to encourage institutional participation and enhance consumer confidence in digital assets.
Moreover, the GENIUS Act’s progress signals a willingness among lawmakers to innovate within the stablecoin space, potentially paving the way for new products and services, including proposals like a Meta stablecoin. However, the success of these initiatives depends on timely legislative action and effective regulatory coordination.
Conclusion
The Senate Banking Committee’s commitment to passing digital asset market structure legislation by the end of September marks a critical juncture in US crypto regulation. With bipartisan support and alignment from the White House, these efforts aim to establish clear, balanced rules that foster innovation while protecting market participants. Stakeholders across the crypto ecosystem should closely monitor these developments, as the forthcoming legislation will shape the regulatory landscape and influence the future trajectory of digital assets in the United States.
