US Senate Unveils Crypto Market Structure Bill with Key Provisions

In Brief

• The bill clarifies SEC and CFTC roles in crypto asset regulation.
• Stablecoin rules restrict passive yields, favoring active participation.
• DeFi developer protections shield non-controlling creators from liability.

Senator Cynthia Lummis has unveiled the Digital Asset Market Clarity Act, aiming to clarify the regulatory framework for cryptocurrencies. The bill proposes defining the roles of the SEC and CFTC, reducing confusion and improving oversight. 

It is expected to bring more transparency and stability to the crypto market. If passed, it could provide clearer rules for investors and businesses, helping to increase institutional participation.

The bill covers a wide range of crypto market elements, including stablecoins, DeFi, and new token classifications. It proposes rules for stablecoins that restrict companies from paying interest just for holding them. 

Instead, rewards will be allowed for specific activities like staking, liquidity provision, or network participation. The bill also introduces protections for blockchain developers who do not manage user funds. These protections are designed to ensure developers are not treated like financial intermediaries.

Stablecoin and DeFi Provisions in the Bill Spark Debate

The bill includes several provisions targeting the stablecoin market and decentralized finance (DeFi). One significant change is the restriction on passive stablecoin yields, which critics argue could give banks an advantage. 

While traditional banks can still offer interest on deposits, the bill limits passive rewards in crypto markets. This could impact retail investors who previously earned yields similar to those offered by banks.

The bill also introduces new classifications for “network tokens,” which are linked to specific blockchain projects. These tokens could be treated as non-securities, depending on how the rules are finalized. 

This classification may apply to tokens like XRP and Solana, depending on future regulatory interpretations. The draft bill is still in its early stages and is set for markup on January 15, 2026.