The U.S. Senate has taken a massive step toward bringing order to the Bitcoin and crypto industry with the introduction of a comprehensive draft bill.
Republican Senators Tim Scott of South Carolina, Cynthia Lummis of Wyoming, Bill Hagerty of Texas, and Bernie Moreno of Ohio are behind the bill, which they titled the Responsible Financial Innovation Act of 2025.
Clearer Securities Rules
Notably, the lawmakers divided the bill into four major sections, each designed to handle a major area of concern. The first part focuses on securities laws. Specifically, it defines what digital assets are and states when a token should fall under securities regulations or when it shouldn’t.
The bill allows certain tokens to qualify as commodities rather than securities, provided they don’t grant holders rights like equity or dividends.
Meanwhile, token issuers who raise or trade more than $5 million in the U.S. must file regular reports about their operations, token economics, and leadership. The rules also stop insiders from quickly selling off tokens before a network becomes decentralized.
Protection Against Crimes and Responsible Banking Involvement
Further, in the second section, the bill addresses the growing concern around crypto-related crime. It directs the Treasury to develop standards for financial institutions working with digital assets and encourages law enforcement and regulators to share information with private crypto companies.
However, the third section sets clearer expectations for banks and investment firms. Notably, it mentions how banks can work with digital assets legally and calls for consistent rules when institutions include crypto in investment portfolios. It also updates how firms should calculate capital when crypto transactions are offset between parties.
The final part of the bill addresses the future. Interestingly, lawmakers proposed a sandbox that lets innovators test blockchain projects with lighter oversight.
The bill also guarantees the right to self-custody, allowing individuals to hold and manage their crypto without going through a third party. In addition, it updates the SEC’s responsibilities to include support for innovation and urges regulators to align U.S. rules with global standards.
Senator Tim Scott, who chairs the Senate Banking Committee, said lawmakers in both chambers share a common goal of creating fair rules that protect investors while allowing innovation to thrive in the U.S. He stressed the importance of keeping digital finance rooted in American soil.
The Trump Administration Pushing to Regulate Crypto
This bill follows a series of moves the federal government has made since President Donald Trump returned to office in January 2025.
Just days after taking office, he signed an executive order that created a task force focused on reforming crypto regulations. Also, another order rolled back earlier policies from the Biden administration.
Congress also took major action this month during what many in Washington now call “Crypto Week.” For context, lawmakers passed three major bills aimed at creating a national framework for digital assets. One of them, the GENIUS Act, sets strict rules for stablecoins.
Moreover, the CLARITY Act, which passed the House and now awaits Senate approval, shifted regulatory power over digital asset commodities from the SEC to the CFTC. The bill gave developers decentralized platforms more breathing room while keeping enforcement tools in place for those who break the law.
Another bill, the Anti-CBDC Act, blocked the Federal Reserve from creating or testing a retail central bank digital currency without direct approval from Congress. Specifically, lawmakers designed the measure to protect financial freedom and privacy.
Six months into Trump’s second term, the push to fully regulate crypto in the U.S. has gained steam. As the new Senate bill gets on the table, the country is now looking to close the chapter on regulatory confusion.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
