A group of Republicans on the Senate Banking Committee released a set of principles for the development of comprehensive market structure legislation.
The principles will be used to guide discussions and negotiations as the committee engages with industry participants, legal and academic experts, and government stakeholders on the bill text.
“Since taking over as Chairman, I’ve led a new approach to digital assets regulation, and we’ve delivered results for the industry and the American people. We have more work to do, and I look forward to building on the success of the GENIUS Act and advancing market structure legislation here in the Senate. These principles will serve as an important baseline for negotiations on this bill, and I’m hopeful my colleagues will put politics aside and provide long-overdue clarity for digital asset regulation,” Sen. Tim Scott (R-SC), chairman of the committee, said.
The principles were developed by Scott along with Sens. Cynthia Lummis (R-WY), Thom Tillis (R-NC), and Bill Hagerty (R-TN).
In summary, the principles state:
- Legislation should clearly define the legal status of digital assets.
- Jurisdiction should be clearly allocated among regulators.
- Regulation should be modernized to foster innovation.
- Regulation should protect those who purchase or trade digital assets.
- Illicit finance measures should be targeted and pro-innovation.
- Federal financial regulators should welcome responsible innovation.
“America desperately needs digital asset legislation that promotes responsible innovation and protects consumers,” Lummis said. “While the European Union and Singapore have established clear regulations, the U.S. continues to sit on the sidelines while the digital asset industry seeks greener pastures. That changes today. I am partnering with Chairman Scott to provide principles for market structure legislation to finally draw the line between a security and a commodity and ensure the U.S. remains at the helm of global financial advancement.”
Lummis is the chair of the Subcommittee on Digital Assets.
“As Congress considers a regulatory framework for digital assets, our top priority must be providing legal clarity and certainty without stifling innovation,” Tillis said. “These principles strike the right balance by protecting consumers, promoting innovation, and clearly defining the roles of regulators in a rapidly evolving market.”
Haggerty added that the lack of clear regulatory authority has forced digital asset innovation to move beyond U.S. borders and subjected issuers, exchanges, and developers to uncertainty.
“By working towards a reasonable, light-touch market structure framework, we can help bolster our nation’s economy and protect American consumers,” Hagerty said.