Catenaa, Wednesday, July 23, 2025- Senate Republicans on the Banking Committee released a discussion draft Tuesday outlining a regulatory framework for crypto markets, building on the recently passed House Clarity Act.1
Chaired by Sen. Tim Scott, R-S.C., and co-sponsored by Sens. Cynthia Lummis, R-Wyo., Bill Hagerty, R-Tenn., and Bernie Moreno, R-Ohio, the draft focuses on defining digital assets under securities laws, setting standards for ancillary assets, and easing regulatory burdens for crypto firms.
The bill introduces a system allowing projects to self-certify to the U.S. Securities and Exchange Commission (SEC) that their digital tokens are not securities, subject to a 60-day rebuttal window.
Token sales exceeding $5 million or trading volumes surpassing that threshold would trigger mandatory disclosures, including corporate information and custody practices.
The draft also proposes redefining “investment contract” under the Howey Test, adding requirements that issuers’ post-sale efforts must go beyond basic administrative functions.
It directs the SEC to modernize rules affecting digital assets, such as custody, disclosure, and broker-dealer registration—to better align with crypto’s unique technological landscape.
Joint rulemaking between the SEC and the Commodity Futures Trading Commission (CFTC) is also proposed to resolve jurisdictional gaps, especially in areas like digital commodity trading and derivatives.
Additionally, the bill seeks to protect self-custody rights, allow banks to engage in crypto services, and exclude developers from money transmitter laws. However, oversight of secondary crypto markets remains unaddressed and is expected to fall under the Senate Agriculture Committee.
See this link as well.
- https://www.banking.senate.gov/imo/media/doc/Responsible%20Financial%20Innovation%20Act%20Discussion%20Draft%20-%207.22.2025.pdf[↩]
