US senators unveil a new draft bill to improve crypto regulation even further

A group of US senators has introduced a discussion draft of a new bill that would establish clearer regulations for the country’s digital asset industry.

On July 22, Senators Tim Scott, Cynthia Lummis, Bill Hagerty, and Bernie Moreno released the draft version of the Responsible Financial Innovation Act of 2025 to solicit public feedback.

The proposed legislation builds on the CLARITY Act recently passed in the House and focuses on strengthening market structure, protecting consumers, and enhancing regulatory oversight.

The senators said the bill addresses key areas such as banking, disclosures, securities classification, and anti-illicit finance measures.

Commenting on the initiative, Senator Lummis emphasized the urgency of regulatory clarity to bolster the growth of the emerging industry in the US.

According to the lawmaker:

“We cannot allow regulatory confusion to continue driving American innovation overseas. Market structure legislation will establish clear distinctions between digital asset securities and commodities, modernize our regulatory framework, and position the United States as the global leader in digital asset innovation.”

Key proposals in the draft

One of the bill’s core components is the introduction of clear definitions and standards for ancillary assets, digital tokens that do not qualify as securities. The draft also introduces tailored disclosure requirements for digital asset issuers, ensuring pre- and post-launch transparency.

Senator Hagerty noted that “outdated laws and regulatory uncertainty around digital asset market structure have hindered American innovation and left consumers without adequate protections.”

Due to this, the draft called on the US Securities and Exchange Commission (SEC) to modernize its operations by adapting its rules for emerging technologies.

This includes issuing new rules under “Regulation DA” that exempt certain ancillary asset sales from registration if they remain under $75 million in annual proceeds, capped over four years. It also pushes for refined definitions around what constitutes an “investment contract” under federal law.

The bill promotes innovation in banking by allowing financial holding companies to deliver services using digital assets and distributed ledger technology.

Additionally, it includes provisions to combat illicit finance, calling for stronger examination standards and inter-agency cooperation to detect and prevent misuse of digital assets.

The senators have also released a Request for Information to support the rulemaking process, inviting public comment on more than 35 topics.

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