Senate Republicans on the Banking Committee have proposed key principles for market structure legislation. These principles highlight the need for clarity in regulation while fostering innovation and safeguarding consumers. This move coincides with efforts from Democrats to curb the extensive cryptocurrency investments of the Trump family.
On Tuesday, the Senate Banking Committee unveiled a new set of principles aimed at steering the creation of comprehensive legislation for the cryptocurrency market.
“As Congress evaluates a regulatory framework for digital assets, our primary focus must be to ensure legal clarity and certainty, all while encouraging innovation,” stated Senator Thom Tillis (R-NC). “These principles appropriately balance consumer protection, innovation promotion, and a clear definition of regulatory roles.”
The principles, led by Senate Banking Chairman Tim Scott (R-SC), Subcommittee on Digital Assets Chair Cynthia Lummis (R-WY), and Senators Tillis and Bill Hagerty (R-TN), focus on clearly defining the legal status of digital assets, outlining regulatory authority, and modernizing the oversight framework in support of responsible innovation.
They also advocate for specific anti-money laundering measures and emphasize the importance of regulators embracing technological advancements.
In a hearing following the announcement of these guidelines, Senator Lummis expressed that they are intended to enhance the productivity of discussions surrounding digital asset market structure compared to prior stablecoin discussions.
“There is a pressing need for digital asset legislation in America that fosters responsible innovation and consumer protection,” she remarked in a statement. “While the European Union and Singapore have implemented clear regulatory frameworks, the United States remains inactive.”
The introduction of these principles came ahead of a subcommittee hearing that same day, which included testimonies from Coinbase, Multicoin Capital, and others regarding bipartisan legislative proposals.
This follows recent progress on the Digital Asset Market Clarity Act, which aims to transfer oversight of the crypto industry from the SEC to the Commodity Futures Trading Commission. This act passed two House committees on June 11 and is expected to proceed to a full vote.
Additionally, crypto-related policymaking remains active across the federal landscape. On Monday, U.S. Federal Housing Finance Agency director Bill Pulte indicated that the agency would assess the implications of crypto holdings in mortgage applications.
A known crypto advocate since 2019 and a recent Trump appointee, Pulte revealed substantial digital asset holdings earlier this year.
However, the advancement of cryptocurrency in government by individuals with notable crypto investments has raised concerns, particularly regarding the president.
On Monday, Senator Adam Schiff (D-Calif.) introduced the COIN Act, designed to prevent the president and immediate family members from profiting from digital assets during their time in office.
Schiff’s bill was presented shortly after the bipartisan approval of the Trump-backed GENIUS Act, which critics claim may allow such profits under a regulatory façade. Interestingly, Schiff supported the GENIUS Act.
Edited by Sebastian Sinclair
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