Republican Senators Introduce Biggest Crypto Bill of the Year

Senators from the Republican Party have introduced a new bill to establish clear regulatory guidelines for the U.S. cryptocurrency industry. 

The new crypto regulatory framework was published on the Senate Banking Committee website today. CNBC first reported on the development earlier after it obtained a draft framework of the new bill, dubbing it the “biggest crypto bill of the year.”  

The bill’s sponsors are the Chairman of the Senate Banking Committee, Senator Tim Scott, and pro-crypto Senator Cynthia Lummis. Two other Republican Senators, Bill Hagerty—the sponsor of the GENIUS Act—and Tom Tillis, also backed the upcoming crypto legislation. 

Features of the New Bill 

Notably, the legislation would provide clear rules of the road for crypto businesses, investors, and regulators. In particular, it will end years of ambiguity in the sector by specifying requirements that determine whether a token qualifies as a security or commodity. 

For context, assets classed as securities will fall under the SEC’s regulatory purview, while the CFTC will regulate those categorized as commodities. 

Additionally, under the proposed legislation, crypto trading platforms would be required to register with the CFTC rather than the SEC. The Gary Gensler-led SEC previously sued multiple exchanges, including Binance and Coinbase, for failing to register with the commission. 

Although the SEC has withdrawn these lawsuits, the bill would ensure that the CFTC oversees crypto exchanges. Furthermore, it would reduce the SEC’s authority over cryptocurrencies, making the CFTC the industry’s main regulator. 

A Leverage 

Interestingly, the legislation features what CNBC called a ‘common sense package’ to prevent sanctions evasion and anti-money laundering (AML). According to Senator Scott, the included common-sense package will help strengthen negotiations for the bill’s potential passage. 

The development comes a week after the Senate passed the GENIUS legislation for stablecoins. As reported earlier, 68 Senators, including 18 Democratic lawmakers, voted in support of the stablecoin bill, which has now moved to the House for further deliberations and votes. 

President Trump has also urged the House to pass the stablecoin legislation so he can sign it into law immediately. Given the bipartisan support for the GENIUS Act, Senator Scott hopes that his upcoming crypto legislation will receive similar support. 

Notably, the Senate Banking Committee has scheduled a formal hearing on the bill today at 3 p.m. (ET).