The Crypto Market Structure Act, one of the most comprehensive attempts at cryptocurrency regulation in the US, is advancing in the Senate with bipartisan support.
Senate Democrats have released a comprehensive outline for the legislation, sparking optimism among both crypto industry representatives and some Republican senators, according to crypto journalist Eleanor Terrett.
The framework announced by the twelve-member Democratic senators' group calls for clarifying the legal status of tokens, strengthening oversight of exchanges and issuers, combating illicit financial activities, preventing conflicts of interest, and providing more resources to regulatory agencies. These topics are largely aligned with Republican priorities.
Senator Cynthia Lummis, a leading Republican, welcomed the Democrats' move. However, the key difference between the two parties lies in the scope of the regulation. Republicans generally advocate for more “light-touch” regulations, while Democrats favor stricter rules.
The Senate Banking Committee is expected to consider revisions to the bill by the end of September, while the Senate Agriculture Committee is expected to release a separate draft regarding the CFTC's jurisdiction. Following this process, the Crypto Market Structure Act is expected to be signed into law by President Donald Trump before the end of the year, just before Christmas.
*This is not investment advice.
