Bitcoin News Today: U.S. Crypto Regulation Shifts Toward Innovation Over Control

The Senate Banking Committee has released an updated draft of its market structure bill, signaling a major step forward in the U.S. legislative efforts to regulate digital assets. The Responsible Financial Innovation Act of 2025, now 182 pages long, includes new provisions aimed at fostering innovation while clarifying the regulatory landscape for cryptocurrencies. This version, finalized on September 5, 2025, expands on a July draft introduced by Senate Banking Chair Tim Scott (R-SC) and includes a section titled “Protecting Software Developers and Software Innovation,” which is absent from the House’s CLARITY Act [1].

One of the key features of the updated Senate bill is its exemption of certain actors from securities laws and anti-money laundering (AML) requirements. Notably, the bill clarifies that validators—individuals or entities that validate transactions on a blockchain—are not subject to AML and anti-fraud compliance requirements. Additionally, the bill explicitly states that offering, selling, or transferring a non-fungible token (NFT) does not constitute a securities offering, a provision that industry stakeholders have long advocated for [1]. This clarification distinguishes the Senate’s approach from the House bill, which has taken a more restrictive stance on NFTs.

The updated Senate bill also emphasizes collaboration between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in defining and regulating digital commodities. Much like the CLARITY Act, the Responsible Financial Innovation Act requires the two agencies to jointly issue rules governing digital commodities. This inter-agency cooperation is seen as a critical step toward streamlining oversight and reducing regulatory overlap [1]. The Senate’s approach reflects a broader industry push for clear, consistent rules that allow innovation to flourish without excessive regulatory burdens.

The timing of the Senate’s updated draft coincides with a series of regulatory developments in the crypto space. In the same week, the SEC and CFTC released two joint statements addressing crypto trading and exchange operations. A joint statement from SEC Chair Paul Atkins and CFTC Acting Chair Caroline Pham emphasized the need for regulatory frameworks that support innovation and competition [1]. They highlighted the agencies’ commitment to fostering a regulatory environment that empowers American innovation in digital assets and reinforces the U.S. as a global crypto hub. This collaborative approach has been welcomed by industry stakeholders, who have often cited regulatory uncertainty as a major obstacle to institutional adoption.

The Senate’s Responsible Financial Innovation Act is now expected to be reviewed by the full committee by the end of September, with broader legislative efforts aimed at merging it with the House’s CLARITY Act. Senator Cynthia Lummis (R-WY) has expressed optimism about the possibility of having a unified bill on President Donald Trump’s desk by Thanksgiving. The House’s CLARITY Act, which passed with 294 votes in a 294-134 vote, has already received support from 78 Democrats [1]. However, the Senate’s revised draft introduces new provisions that may require negotiation and compromise between the two chambers.

The updated bill also reflects broader shifts in how federal agencies approach crypto regulation. The SEC and CFTC have recently clarified that registered exchanges can facilitate spot trading of digital assets without legal barriers, a development that has been described as a “critical turning point” for institutional adoption [4]. This regulatory clarity, coupled with the Senate’s legislative efforts, is expected to pave the way for major U.S. exchanges like the NYSE and Nasdaq to list spot Bitcoin and Ethereum products. Such developments signal a shift in tone from enforcement-driven actions to a more accommodating regulatory environment.

As lawmakers continue to refine the Responsible Financial Innovation Act, the focus remains on balancing innovation with investor protection. The Senate’s inclusion of provisions to protect software developers and clarify NFT regulations highlights a recognition of the industry’s unique challenges and opportunities. Meanwhile, the collaborative stance between the SEC and CFTC reinforces the need for a coordinated, cross-agency approach to digital asset oversight. With the House and Senate working to align their respective bills, the potential for a comprehensive crypto market structure framework is moving closer to reality [1].

Source:

[1] Senate Banking Committee finalizes updated market structure bill (https://blockworks.co/news/senate-crypto-market-structure-bill)

[2] Senate Banking Finalizes Details on Market Structure (https://www.cryptoinamerica.com/p/senate-banking-finalizes-details)

[3] Cryptocurrency Regulation: A Guide to U.S. & Global Policies (https://www.britannica.com/money/cryptocurrency-regulation)

[4] SEC, CFTC Clear NYSE and Nasdaq to Offer Spot Bitcoin, Ethereum Trading (https://cryptorank.io/news/feed/07de2-sec-cftc-clear-nyse-and-nasdaq-to-offer-spot-bitcoin-ethereum-trading)

[5] SEC and CFTC staff clear path for spot crypto trading on regulated exchanges (https://www.aoshearman.com/en/insights/ao-shearman-on-fintech-and-digital-assets/sec-and-cftc-staff-clear-path-for-spot-crypto-trading-on-regulated-exchanges)

[6] How Will SEC's Crypto Regulations Change the Landscape? (https://www.onesafe.io/blog/sec-crypto-regulations-implications)