Bitcoin News Today: US Senate Unveils 2025 Crypto Bill Assigning SEC as Primary Regulator

The U.S. Senate Banking Committee has unveiled the Responsible Financial Innovation Act of 2025 (RFIA), a draft bill aiming to establish a regulatory framework for the cryptocurrency market. Introduced on July 23, 2025, the legislation builds on the previously passed House bill, the Digital Asset Market Clarity Act (CLARITY Act), and integrates elements from the GENIUS Act [1]. The RFIA, championed by Senators Tim Scott, Cynthia Lummis, Bernie Moreno, and Bill Hagerty, seeks to clarify the legal status of digital assets, define regulatory responsibilities, and foster innovation while protecting investors [2]. The bill introduces a new classification system for digital assets, distinguishing them from securities and imposing specific requirements on the Securities and Exchange Commission (SEC) to refine its oversight [3].

Central to the RFIA is the reassignment of regulatory authority for most digital assets from the Commodity Futures Trading Commission (CFTC) to the SEC. This shift positions the SEC as the primary enforcer for cryptocurrencies and “ancillary assets,” a category designed to exclude certain tokens from the strict definition of securities while maintaining regulatory scrutiny [4]. The bill also proposes replacing the longstanding Howey Test, used to determine securities status, with a revised investment contract rule to reduce ambiguity for market participants [5]. Additionally, the legislation includes Regulation DA, a streamlined framework for token offerings that allows projects to raise capital without triggering full securities law requirements, potentially lowering compliance burdens [6].

The RFIA introduces a “Micro-Innovation Sandbox” to encourage experimentation by startups in a controlled regulatory environment. This provision enables smaller firms to test crypto products under relaxed conditions, balancing innovation with investor safeguards [7]. The bill also expands the role of traditional financial institutions, permitting banks and financial holding companies to engage in crypto-related activities such as custody, lending, and node operations. This aligns with the SEC’s broader mandate to prioritize innovation and market efficiency, signaling a push for digital assets to integrate into mainstream finance [8].

The Senate’s approach contrasts with the House’s earlier GENIUS Act, which advocated for a decentralized regulatory model across multiple agencies. Critics argue the House framework could create compliance challenges, whereas the Senate’s centralized model under the SEC is seen as more practical, leveraging the agency’s existing expertise and resources [9]. This distinction is particularly relevant amid recent CFTC vacancies, which may hinder its capacity to enforce crypto regulations effectively [10]. Analysts suggest the RFIA reflects a growing congressional consensus to modernize financial regulations for the digital age, with potential to spur innovation while mitigating risks associated with unregulated markets [11].

Public comments on the draft are now open, but the bill must still pass a committee vote before advancing. The SEC’s ability to adapt enforcement strategies to the unique challenges of digital assets will be critical to the framework’s success.

Source:

[1] [Senate Banking Committee Releases Digital Asset Market Structure Discussion Draft](https://www.trmlabs.com/resources/blog/senate-banking-committee-releases-digital-asset-market-structure-discussion-draft)

[2] [US Senate Republicans Unveil Draft Bill to Bring Clarity to Crypto Regulations](https://cryptoslate.com/us-senators-unveil-draft-bill-to-bring-clarity-to-crypto-regulations/)

[3] [RFI Act Draft: Senate Pushes SEC as Crypto’s Top Regulator](https://www.bitcoinsensus.com/news/rfi-act-draft-senate-pushes-sec-as-cryptos-top-regulator/)

[4] [House Passes GENIUS Act as Senate Debates Crypto Oversight](https://www.ainvest.com/news/house-passes-genius-act-senate-debates-crypto-oversight-august-recess-2507/)

[5] [RFI Act Draft: Senate Pushes SEC as Crypto’s Top Regulator](https://www.bitcoinsensus.com/news/rfi-act-draft-senate-pushes-sec-as-cryptos-top-regulator/)

[6] [Senate’s RFI Act Introduces Regulation DA for Token Offerings](https://www.binance.com/en/square/post/27343555058401)

[7] [Senate Banking Committee Shares Draft Market Structure Bill](https://www.dlnews.com/articles/regulation/senate-banking-committee-shares-draft-market-structure-bill/)

[8] [U.S. Senate Unveils Draft Bill to Fully Regulate Bitcoin and the Crypto Industry](https://thecryptobasic.com/2025/07/22/us-senate-finally-unveils-draft-bill-to-fully-regulate-bitcoin-and-the-crypto-industry/)

[9] [U.S. Senate Pushes Draft Bill to Clarify Crypto Rules and Strengthen Bitcoin Regulation](https://coincentral.com/senate-pushes-draft-bill-to-clarify-crypto-rules-and-strengthen-bitcoin-regulation/)

[10] [Senate Crypto Framework: Tokens as Commodities, With a Twist](https://cryptonews.com/news/senate-crypto-framework-tokens-commodities-catch/)

[11] [US Crypto Week: GENIUS Act Becomes Law](https://www.elliptic.co/blog/crypto-regulatory-affairs-us-crypto-week-delivers-as-genius-act-becomes-law-clarity-act-moves-to-senate)