Republican senators released a draft bill for digital asset regulation on July 23. The Senate crypto bill, called the Responsible Financial Innovation Act, comes from Tim Scott, Cynthia Lummis, and two other Republicans on the Senate Banking Committee. It builds on the CLARITY Act, which passed in the House of Representatives on July 17.
Scott stated,
“My colleagues in the House and Senate and I share the same goal: provide clear rules of the road for digital assets.”
The bill aims to bring structure to the crypto market and align Senate efforts with those already passed in the House.
The Senate crypto bill is still in draft form and may change. Lawmakers said they plan to pass it before October, although Congress is expected to go on break for the summer.
House and Senate Address Crypto Disclosure Rules
Both the Senate crypto bill and the CLARITY Act propose updates to the Securities Act of 1933. Lawmakers argue the law does not cover current digital asset use cases. The bills suggest new disclosures for crypto projects and legal clarity for asset classification.
The CLARITY Act allows the SEC and CFTC to work together on rules for digital asset regulation. This cooperation would define whether a token is a security or something else, depending on how it is used and structured.
The Senate crypto bill includes updates for “ancillary assets.” These are crypto tokens that do not meet the legal definition of a security. Lawmakers say these assets still need disclosures but fall outside the SEC’s direct authority.
Changes to any wording in the Senate crypto bill may delay progress. Lawmakers expect more discussions once it moves forward in the chamber.
House CLARITY Act Passed With Bipartisan Support
The CLARITY Act passed the House of Representatives with votes from more than 70 Democrats. Republican sponsors received backing from both sides as they moved forward with crypto market regulation.
Three crypto bills passed the House in mid-July. Of those, only the GENIUS Act cleared both chambers. President Donald Trump signed the GENIUS Act into law this month.
The other two bills, including the CLARITY Act, still need approval in the Senate. The new Senate crypto bill suggests Republicans want to align their version with the House text.
Senate Majority and Industry Response
Senators Tim Scott and Cynthia Lummis announced in June that they would push for the Senate crypto bill to pass before October. With Republicans holding a slim majority in the Senate, any disagreements over the bill’s content could lead to delays.
Liat Shetret, Vice President of Global Policy at Elliptic, commented on the current pace of digital asset regulation. She said,
“With bipartisan backing, the CLARITY Act heading to the Senate signals increasing momentum behind comprehensive crypto policy.”
She also noted the possible delays as Congress begins its summer recess.
It remains unclear whether the Senate crypto bill will receive enough support for passage. Lawmakers are still debating parts of the proposal as industry stakeholders watch the progress closely.
