The Digital Asset Market Structure Bill is a proposed bipartisan framework to split crypto oversight between the SEC and CFTC; Senate Republicans are divided, delaying markup as lawmakers reconcile asset classification, stablecoin rules, and anti-money laundering safeguards.
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Senate division delays markup: several GOP senators want more time to resolve oversight and classification concerns.
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Key proposals include a dual SEC/CFTC framework, clearer securities vs. commodities tests, and stablecoin regulation.
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Regulatory guidance from the SEC and CFTC could expand spot crypto access to traditional brokers, increasing mainstream adoption.
Digital Asset Market Structure Bill: Senate Republicans split on timing and oversight; read concise analysis and next steps for crypto policy. Stay informed with COINOTAG.
What is the Digital Asset Market Structure Bill?
The Digital Asset Market Structure Bill is a proposed congressional framework to allocate digital asset oversight between the SEC and CFTC, clarify asset classifications, and introduce rules for stablecoins and platform transparency. The bill aims to balance innovation with investor protection while resolving regulatory uncertainty that has hampered U.S. crypto markets.
Why are Senate Republicans split over the bill?
Senate Republicans disagree on pace and substance. Senator John Kennedy warned on September 10 that the Banking Committee is not ready to advance the bill, citing outstanding questions on industry influence and enforcement scope.
Chairman Tim Scott and allies argue a clear bipartisan framework is overdue and pushed for a September markup, while others call for more stakeholder feedback and stricter safeguards.
How would the bill change crypto oversight?
The bill proposes a dual-regulator model assigning market conduct and custody responsibilities across the SEC and CFTC. It also seeks clearer tests to separate securities from commodities and introduces AML/know-your-customer rules tailored to digital assets.
Supporters say this reduces legal ambiguity. Critics worry about regulatory capture and the potential for loopholes that favor large platform operators.
What recent legislative moves affect the debate?
In July the House passed the CLARITY Act; Senate Republicans introduced the GENIUS Act focused on dollar-pegged stablecoins. Meanwhile, a group of 12 Senate Democrats released an alternate framework calling for tougher disclosure, mandatory platform registration, and ethics restrictions for lawmakers and families.
What did key senators say?
Senator John Kennedy: “I don’t think we’re ready. People that I talk to still have a lot of questions. I know I still have a lot of questions.”
Senator Tim Scott’s office noted the Responsible Financial Innovation Act (2022) and months of stakeholder engagement, urging the Senate not to fall behind other jurisdictions.
How is the crypto industry responding?
Industry leaders, including Coinbase’s Brian Armstrong, have publicly pushed for a timely Senate markup to deliver regulatory clarity. Lobbying and advocacy remain active as exchanges and institutional participants prepare for broader market access.
What’s next for regulators?
The SEC and CFTC issued joint guidance widening access to spot crypto trading for traditional exchanges and brokerages. Proponents say this could spur mainstream adoption; opponents argue it complicates a fragmented legislative landscape.
Whether Congress finalizes a market structure bill before international peers such as the EU and Singapore remains uncertain.
Frequently Asked Questions
When might the Senate vote on the bill?
The Senate timetable is unsettled. Chairman Tim Scott sought a September markup, but Senator Kennedy’s objections and competing proposals from Democrats make exact timing unpredictable.
Will the bill affect retail investors?
Yes. The bill’s asset classification and custody rules aim to increase investor protections, expand access through regulated brokerages, and impose disclosure obligations on trading platforms.
How do SEC and CFTC roles change under the bill?
The proposal would split responsibilities: the SEC would focus on securities-like tokens and conduct, while the CFTC would oversee commodity-like tokens and market integrity, including derivatives and futures.
Key Takeaways
- Legislative pause: Senate Republican divisions have delayed a planned September markup.
- Dual-regulator proposal: The bill centers on dividing oversight between the SEC and CFTC and clarifying asset tests.
- Industry and regulator actions: Exchanges lobby for clarity while the SEC and CFTC issue joint guidance expanding spot access.
Conclusion
The Digital Asset Market Structure Bill seeks to create a durable U.S. regulatory framework by assigning roles to the SEC and CFTC, clarifying asset classifications, and addressing stablecoin governance. But intra-party divisions, alternative Democrat proposals, and regulator guidance mean timing and final scope remain uncertain. Watch legislative calendars and regulator announcements for next steps.
