Key Takeaways
- The new Senate draft defines ancillary assets and proposes Regulation DA to exempt certain digital asset sales from SEC registration.
- Senators request public feedback on investor protection, custody, and illicit finance as they aim to finalize crypto legislation under Trump’s next term.
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Senate Republicans introduced a new discussion draft to define US crypto market structure, building on the CLARITY Act passed by the House last week with bipartisan support.
Unveiled Tuesday by Senate Banking Chair Tim Scott and Senators Cynthia Lummis, Bill Hagerty, and Bernie Moreno, the bill proposes clear definitions for non-security tokens, tailored disclosures, and modernized SEC oversight for digital assets.
The draft also includes a Request for Information (RFI), seeking industry input on custody, illicit finance, and other key areas.
Scott framed the proposal as part of a unified House-Senate effort to set clear guardrails and keep crypto innovation anchored in the US.
“Working with President Trump, we can deliver a comprehensive, bipartisan regulatory framework,” he said.
A key feature is the definition of “ancillary assets,” a new token category outside securities law. The bill directs the SEC to implement Regulation DA, exempting certain token sales of up to $75 million annually for four years from registration.
Lummis emphasized that the bill aims to end the “regulatory uncertainty” that has driven innovation offshore. “We cannot allow regulatory confusion to continue driving American innovation overseas,” she said.
Other provisions would require the SEC to clarify “investment contract” rules, update legacy laws for crypto’s technical realities, and coordinate with law enforcement to address illicit finance.
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