Summary: U.S. Senate to overhaul crypto market structure? What’s coming up next

US Senate Unleashes Landmark Digital Asset Overhaul Plan! The U.S. Senate Banking Committee has unveiled a groundbreaking discussion draft, the "Responsible Financial Innovation Act," aiming to bring clarity and protection to the digital asset market. Released on July 22nd, this pivotal proposal establishes a clear regulatory framework for digital assets, following the CLARITY Act. At its core, the draft modernizes outdated securities laws and defines authority for U.S. regulatory agencies like the SEC and CFTC. Senator Tim Scott, committee chair, emphasized the draft's goal: clear rules that protect investors, foster innovation, and anchor digital finance in America. A major highlight is the redefinition of "ancillary assets," using a "rights-based approach" instead of the House's "maturity" test. This critical distinction determines whether an asset falls under CFTC or SEC oversight. Projects can self-certify assets as ancillary, with the SEC retaining a 60-day dispute window. Senator Cynthia Lummis hailed it as a vital step towards ending regulatory uncertainty, ensuring innovation remains domestic. Beyond asset classification, the draft addresses broader issues, proposing updates to deter illicit financial activity and support banking innovation. Currently, the Senate Banking Committee is collecting feedback from crypto and financial stakeholders. This discussion draft marks an essential step towards potential formal legislation, promising a more structured future for U.S. digital finance.