Sen. Tim Scott said Tuesday that work on a federal crypto market structure bill is progressing and that a fresh draft could be ready by the end of the week, signaling renewed momentum in Congress to define how digital assets are regulated in the United States.
Senate Effort Targets Crypto Market Structure
Scott, the ranking member of the Senate Banking Committee, indicated that lawmakers are moving toward updated legislative text focused on the core question of market structure for digital assets. Such legislation typically aims to clarify when a token is treated as a security or a commodity and to delineate oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Market structure bills also commonly address requirements for trading platforms, disclosures for token issuers, and consumer protections, areas that remain unsettled under current law and enforcement actions.
Next Steps and Timeline
According to Scott, a new draft could be circulated by the end of the week. Further steps would likely include committee review and potential markup before any floor consideration. The timeline underscores ongoing bipartisan discussions in the Senate, even as the House has advanced its own approach to digital asset market structure.
Why It Matters
Clear federal rules for the classification and trading of digital assets are widely viewed as critical for market participants, exchanges, and developers operating in the U.S. A comprehensive framework could reduce regulatory uncertainty, set uniform standards for market integrity and consumer protection, and define the roles of the SEC and CFTC. It would also provide a legislative alternative to the current enforcement-led approach, which has left key questions to courts and agency guidance.
Background
The House in 2024 passed the Financial Innovation and Technology for the 21st Century Act (FIT21), a broad digital asset market structure bill, but the Senate has not yet taken up companion legislation. The Senate Banking Committee, chaired by Sen. Sherrod Brown with Scott as ranking member, has been a focal point for negotiations on how to balance investor protections with support for financial innovation.
Scott’s update suggests the Senate is preparing to re-engage on the issue, with a new draft expected to shape the next phase of debate over comprehensive crypto regulation.