Senator Cynthia Lummis presses Congress to pass crypto market structure bill, aiming for regulatory clarity, investor protection, and US innovation leadership.
Senator Cynthia Lummis renewed calls for Congress to pass comprehensive crypto market structure legislation. She contended muddy rules have caused digital asset companies to leave the country for years. Therefore, she encouraged the lawmakers to restore certainty and safeguard innovation. Her statement came as talks are underway on delayed bipartisan proposals.
Lummis Pushes Clear Rules for Digital Asset Oversight
Lummis said market structure legislation would clearly define jurisdiction and strengthen investor protections. In addition, she stressed making sure the United States is a leader in global digital asset innovation. The bipartisan proposal seeks to split oversight between the SEC and CFTC.
The legislation is similar to the Responsible Financial Innovation Act or the CLARITY Act framework on steroids. However, congressional markups had been delayed until early 2026. Therefore, progress is slow despite the bipartisan interest. Lummis plans to use the rest of her Senate term on getting this bill through before retiring in 2027.
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A fundamental provision is that there is a clear jurisdictional boundary between securities and commodities. Generally, digital assets that do not accrue the right of ownership are subject to the oversight of the CFTC. Meanwhile, tokens that are linked to profit expectations continue to be under the jurisdiction of the SEC. This distinction is intended to minimize disputes over enforcement to the extent that they have disturbed crypto businesses.
Consumer protection measures are another major part of the proposal. Specifically, firms are required to separate customer assets from corporate funds. Additionally, the rehypothecation of customer collateral would be banned altogether. Annual independent audits would also become mandatory to prevent a failure like the 2022 FTX collapse.
Stablecoin regulation is another key focus area in the bill. The proposal requires the issuers of stablecoins to operate as regulated depository institutions. Furthermore, for existing tokens, issuers have to hold 100% reserves to back outstanding tokens. However, there is a separate Lummis-Gillibrand stablecoin bill that is under consideration on its own.
Legislative Challenges Persist as Lummis Nears Retirement
Taxation provisions are also present in the proposed framework. Of note, the bill includes a de minimis exemption for transactions under $200. Therefore, small everyday payments of cryptos would be free from capital gains reporting burdens. Supporters claim this change promotes more widespread adoption of the consumer base and greater routine usage of digital assets.
Illicit finance provisions further work to reinforce compliance expectations for crypto firms. The bill extends AML and CFT obligations to digital asset service providers. Additionally, cryptocurrency ATMs would be subject to increased reporting. Lawmakers feel these measures strike a good balance between innovation and national security concerns.
Despite these provisions, passage is still in doubt amid broader legislative competition. Negotiations are ongoing with the White House and a number of committees in Congress. Industry analysts put the odds of passing at 50 percent to 60 percent in 2026.
Lummis has long established herself as a leader of Bitcoin in Washington. She contends that regulatory certainty will lead to bringing capital and talent back to the United States. Moreover, she thinks that clear rules will avoid enforcement-driven policymaking in the future. Her advocacy is in line with a growing bipartisan recognition of crypto’s economic importance.
As her Senate term winds down in January 2027, Lummis doubles down on her push in legislation. She has confirmed she will not run for reelection. Therefore, legislating the passage of market structure legislation is a defining goal. Supporters consider her work to be influential for shaping America’s digital assets future.
Source: https://www.livebitcoinnews.com/senator-lummis-urges-congress-to-pass-crypto-market-structure-bill/
