The landscape for crypto market structure in the U.S. is encountering significant headwinds as new legislative proposals face scrutiny from Senate critics and industry leaders. Recent efforts by Congress have aimed to bring regulatory clarity to the fast-evolving digital asset sector, with the House passing the Digital Asset Market Clarity Act of 2025, commonly known as the Clarity Act. This bill tries to establish clearer rules for classifying digital assets, delineate the oversight roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), and create a provisional registration regime for digital commodity brokers and exchanges.

Building on this momentum, the Senate Banking Committee unveiled its own draft legislation, the Responsible Financial Innovation Act of 2025, which introduces new concepts such as the classification of “ancillary assets” and proposes a sweeping framework for regulation. Unlike the House bill, which leans towards empowering the CFTC, the Senate proposal strengthens the SEC’s authority over these ancillary assets. However, it also requires the SEC to consult with the CFTC on certain joint regulations, signaling an attempt to balance both agencies’ jurisdictions.

Stakeholders from across the industry and state regulators are actively weighing in, expressing concerns about preserving anti-fraud authority and warning that precise legal definitions—like the term “investment contract”—could unintentionally narrow federal protection against fraudulent offerings. The North American Securities Administrators Association (NASAA) recently submitted recommendations emphasizing the need for robust state enforcement powers amid potential new federal rules.

These legislative developments reflect both the challenges and urgency to move away from the current “regulation by enforcement” model, which has created uncertainty and limited traditional financial institutions’ engagement with crypto. While bipartisan support for reform is growing, critics in the Senate and industry experts highlight outstanding issues, particularly around jurisdictional boundaries and the pace of legislative negotiation. With the Senate aiming to advance these bills by late September, the outcome will shape the future regulatory environment for the crypto industry in the United States, determining how innovation can thrive while protecting consumers and markets.