Senate Banking Committee Introduces Discussion Draft Bill on Crypto Market Structure

The Senate Banking Committee has introduced a discussion draft bill addressing crypto market structure, focusing on the Securities and Exchange Commission's oversight of digital assets and introducing the concept of an "ancillary asset." The draft asks the public to weigh in by early August. The bill aims to clarify the SEC's role in regulating digital assets, but its approach differs from the House's Clarity Act. The Senate's efforts are focused on the SEC and its jurisdiction, while the House bill addresses market structure broadly. The discussion draft is a step towards advancing market structure legislation in the Senate.

The Senate Banking Committee has introduced a discussion draft bill aimed at clarifying the Securities and Exchange Commission's (SEC) oversight of digital assets and introducing the concept of an "ancillary asset." The draft, released on July 22, invites public input by early August and marks a significant step toward advancing market structure legislation in the Senate.

The discussion draft bill focuses on the SEC's role in regulating digital assets, a departure from the House's CLARITY Act, which addresses market structure more broadly. The Senate's approach emphasizes the SEC's jurisdiction, while the House bill also considers the Commodity Futures Trading Commission (CFTC) [1].

The bill introduces a new category of digital tokens called "ancillary assets," which are not intended for trading but rather serve as supporting elements for other digital assets. This distinction aims to provide a clearer regulatory framework for the diverse range of digital assets.

The Senate Banking Committee's efforts are part of a broader trend of accelerating regulatory and legislative activity in the United States. Federal banking regulators issued long-awaited guidance on crypto-asset safekeeping activities, and Congress advanced several high-profile crypto bills during a coordinated legislative push dubbed "Crypto Week" in July [2].

The Senate Banking Committee's discussion draft is a significant development in the ongoing effort to create a more structured digital asset framework. It seeks to address the complexities of the digital asset ecosystem and provide clarity for investors, financial professionals, and regulators alike.

References:
[1] https://www.paulhastings.com/insights/crypto-policy-tracker/banking-regulators-clarify-crypto-custody-expectations-congress-advances-landmark-digital-asset-legislation-and-senate-releases-market-structure-draft
[2] https://www.paulhastings.com/insights/crypto-policy-tracker/banking-regulators-clarify-crypto-custody-expectations-congress-advances-landmark-digital-asset-legislation-and-senate-releases-market-structure-draft