In a significant push toward comprehensive digital asset legislation, Senator Cynthia Lummis (R-WY) has declared her commitment to delivering a crypto market structure bill to President Trump’s desk before the year’s end. This ambitious timeline follows recent sweeping regulatory achievements, including the passage of the GENIUS Act, and promises to reshape the landscape of cryptocurrency regulation in the U.S.
Ambitious Legislative Timeline
At the recent Wyoming Blockchain Symposium, Lummis expressed her determination by stating, “We will have market structure to the president’s desk before the end of the year,” and ideally “before Thanksgiving.” The urgency is palpable, as Senate Republicans aim to have the bill approved by the Senate Banking Committee by the end of September. Following that, discussions will continue in the Senate Agriculture Committee throughout October, setting the stage for a major legislative milestone.
This rapid legislative pace signifies the growing acknowledgment of the need for a well-structured regulatory framework for digital assets, with both committees focusing specifically on how the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) will oversee the emerging markets. With cooperation from both sides of the aisle expected, Lummis is looking to foster a broad bipartisan consensus.
Building on Bipartisan House Work
The forthcoming legislation will draw heavily from the House-passed Digital Asset Market Clarity (CLARITY) Act, which garnered significant bipartisan support with 78 Democrats voting in its favor. Senator Lummis has emphasized the importance of honoring this cross-party effort, noting, “We want to honor as much of the House’s work as we can on CLARITY because they had a robust bipartisan vote.” This approach signals a collaborative effort to fine-tune the proposals before they reach the Senate floor.
Tentatively titled the Responsible Financial Innovation Act, the Senate’s version seeks to maintain the foundational elements of the CLARITY Act while introducing necessary amendments to meet Senate expectations. The push for bipartisan unity is seen as crucial in gaining wider acceptance of the bill among skeptical lawmakers and stakeholders.
Key Provisions of the Senate Discussion Draft
The Senate Banking Committee’s discussion draft incorporates several pivotal reforms designed to clarify the regulatory landscape for digital assets. Notably, it will redefine “ancillary assets,” establishing that they are not considered securities if they do not confer financial rights to their owners. This reclassification could pave the way for a broader array of digital innovations to flourish without the burden of strict securities regulation.
Another revolutionary component is the introduction of a “self-certification” process for issuers, which allows them to affirm that their assets lack security-like characteristics, giving the SEC a 60-day window to challenge this assertion. Furthermore, the bill proposes significant changes in how bank holding companies can engage in crypto-related activities, including custodial services. By updating the regulatory framework to account for evolving technologies, legislators aim to ensure robust consumer protections while fostering innovation.
Recent Legislative Victory: The GENIUS Act
A landmark event in the crypto regulatory landscape occurred recently with the enactment of the GENIUS Act, which now mandates that payment stablecoins be fully backed by U.S. dollars or other low-risk assets on a one-for-one basis. Signed into law by President Trump on July 18, 2025, this legislation marks a significant step towards establishing a coherent regulatory framework for this type of cryptocurrency.
The GENIUS Act received substantial bipartisan backing, securing a 68-30 vote in the Senate and a 308-122 vote in the House. This strong show of support indicates a clear legislative appetite for stablecoin regulation, highlighting the importance of balancing innovation with consumer protection. Critics argue, however, that more safeguards are necessary to protect consumers from potential market volatility associated with stablecoins.
Comprehensive Digital Asset Tax Reform
In addition to market structure, Senator Lummis is also pushing for comprehensive reforms in the area of digital asset taxation. This includes legislation that proposes a $300 de minimis exception for small transactions and efforts to end double taxation for digital asset miners and stakers by deferring income recognition until actual sale or disposition. “In order to maintain our competitive edge, we must change our tax code to embrace our digital economy, not burden digital asset users,” she stated, emphasizing her dedication to leveling the playing field for digital asset users.
The proposed reforms, which also address issues of wash sales and mark-to-market treatment, aim to simplify the tax landscape for digital assets. With an estimated net revenue generation of approximately $600 million from 2025 to 2034, this legislation intends to alleviate unnecessary burdens while still enabling tax compliance among digital asset participants.
Broader Advocacy and Regulatory Pressure
Beyond legislative efforts, Senator Lummis is actively advocating for the broader acceptance of digital assets in the financial ecosystem. She’s called upon the Federal Reserve to provide master accounts to crypto-focused depository institutions and has critically assessed “Operation Chokepoint 2.0,” exposing alleged restrictive practices aimed at dissuading banks from engaging with the crypto sector. Her commitment to fostering an inclusive regulatory environment showcases her belief in digital assets’ potential to drive economic growth.
By advocating for the integration of long-term sustainable practices in the crypto space, alongside digital asset provisions stemming from Wyoming’s 2019 laws, Lummis intends to create a financial technology sandbox as part of the broader market structure bill. This innovative approach would allow digital asset firms to operate with fewer restrictions while regulators establish safer guidelines.
A Future Defined by Innovation
As Senator Lummis steers towards the conclusion of this legislative push, the implications for the future of digital assets in America could be profound. By creating a comprehensive regulatory framework that not only facilitates innovation but also assures consumer protection, this forthcoming bill could lay the foundation for a new era of digital finance. With bipartisan support and a robust dialogue on the importance of building an inclusive financial system, the moves made in the coming months are likely to resonate far beyond the crypto sector, influencing the broader economy.
