Senate Republicans Unveil Crypto Market Bill to Expand CLARITY Act

Senators Tim Scott, Cynthia Lummis, Bill Hagerty, and Bernie Moreno (R-OH) have released a discussion draft of a new digital asset market structure bill—framed as the Senate counterpart to the CLARITY Act.

The proposal aims to further define the regulatory boundaries between the SEC and CFTC, and improve clarity for digital asset innovation in the United States.

The draft, published by the Senate Banking Committee under Chairman Scott, builds on the principles laid out in the original CLARITY Act and is designed to encourage innovation without compromising financial stability or consumer protections.

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Lawmakers are now requesting public feedback through a Request for Information (RFI) process. They’re asking industry participants and the public to submit comments by August 5, 2025, including detailed input on topics such as:

• Whether legislation should rely on the concept of “ancillary assets”
• The appropriate use of the Howey test in classifying digital assets as securities
• Mandating SEC rulemaking to redefine the term “investment contract”

This effort comes amid growing bipartisan momentum for establishing a clear regulatory framework in the wake of rising institutional crypto adoption and stablecoin innovation following the GENIUS Act.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.