Scott Eyes 12–18 Democrats as Crypto Bill’s Fate Hangs in Balance

Sen. Tim Scott, chair of the Senate Banking Committee, said on Tuesday that between 12 and 18 Democrats may support the Senate’s version of the market structure legislation addressing digital assets, as outlined in the Digital Asset Market Clarity Act. This potential support would be critical, given that at least 60 votes are required in the Senate for the bill to proceed. Scott made the comments at the SALT conference in Jackson Hole, Wyoming, highlighting the challenges posed by opposition from prominent Democratic senators like Elizabeth Warren, who have voiced concerns over the implications of the proposed reforms [1]. The bill, which remains a focal point for the crypto industry, is expected to determine the regulatory framework for digital assets in the U.S., including how the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) will oversee spot crypto markets [1].

The Senate Banking Committee introduced a discussion draft of the legislation in July, aiming to outline how the SEC should regulate digital assets, following the House’s advancement of its version, the Clarity Act, in the previous week. The Senate Agriculture Committee, another key player in the legislative process, has yet to release a similar draft. The Senate aims to finalize the bill before the end of September, with Scott previously indicating to former White House crypto adviser Bo Hines that this timeline is a key goal. The House and Senate will ultimately need to reconcile their differing versions of the legislation or agree on a unified bill for it to become law [1].

Meanwhile, state securities regulators, particularly through the North American Securities Administrators Association (NASAA), are actively engaging in the evolving regulatory landscape of crypto assets. NASAA recently submitted comments on the Senate’s Responsible Financial Innovation Act (RFIA), urging Congress to preserve state antifraud enforcement authority. State regulators have been proactive in enforcing existing laws in the crypto space, particularly in addressing fraudulent activities, and they have expressed concerns that federal legislation may narrow the traditional Howey test for determining what constitutes an investment contract [2]. The association has also proposed the Support Anti-Fraud Enforcement Act (SAFE Act), which aims to ensure that federal crypto legislation does not preempt or restrict state enforcement powers [2].

The SEC and CFTC are also moving forward with regulatory initiatives in the crypto space. SEC Chairman Paul Atkins recently stated that most crypto assets are not securities, while CFTC Acting Chairman Caroline Pham announced a new initiative to allow CFTC-registered exchanges to list spot crypto asset contracts for trading. These developments highlight the growing institutional recognition of digital assets and the need for clear regulatory guidelines [2]. The President’s Working Group on Digital Asset Markets has also emphasized the need for federal preemption in certain areas involving SEC- and CFTC-registered intermediaries [2].

The legislative process remains complex, with significant differences between the House and Senate proposals. NASAA has previously submitted detailed comments on the House’s Clarity Act, proposing structural changes to intermediary oversight and regulatory jurisdiction. However, none of these amendments were incorporated into the final version. As the debate continues, the role of state regulators in enforcing antifraud measures is expected to remain significant, even if federal legislation is enacted [2]. Market participants must navigate this evolving, multi-layered regulatory environment, where both federal and state authorities are actively shaping the future of digital asset oversight.

Source: [1] Senate Banking Chair Tim Scott: 12-18 Dems May Vote for Market Structure Bill (https://www.coindesk.com/policy/2025/08/19/senate-banking-chair-tim-scott-12-18-dems-may-vote-for-market-structure-bill) [2] State Securities Regulators Stake a Claim in Crypto Asset Markets (https://www.sidley.com/en/insights/newsupdates/2025/08/state-securities-regulators-stake-a-claim-in-crypto-asset-markets)