Washington, D.C. – U.S. Senator Cynthia Lummis (R-WY) joined Senate Banking Committee Chairman Tim Scott (R-SC) and U.S. Senators Bernie Moreno (R-OH) and Bill Hagerty (R-TN) in releasing a discussion draft of the Banking Committee provisions of comprehensive digital asset market structure legislation, building on principles developed in collaboration with Chairman Scott to establish a clear regulatory framework for the digital asset industry.
“The time for regulatory uncertainty in the digital asset space has come to an end,” said Lummis. “This discussion draft represents a thoughtful, balanced approach that will provide the clarity our innovators need while providing robust consumer protections. We cannot allow regulatory confusion to continue driving American innovation overseas. Market structure legislation will establish clear distinctions between digital asset securities and commodities, modernize our regulatory framework, and position the United States as the global leader in digital asset innovation.”
The discussion draft incorporates key principles designed to:
- Establish Clear Legal Definitions: Create statutory distinctions between digital asset securities and commodities, providing regulatory certainty and predictability for market participants
- Allocate Regulatory Authority: Clearly delineates jurisdiction between Federal agencies, ensuring appropriate oversight without regulatory overlap or gaps
- Modernize Federal Law: Updates securities regulations to account for the unique characteristics of digital assets and distributed ledger technology
- Protect Consumers and Market Participants: Implements appropriate registration and risk management requirements for centralized digital asset intermediaries while preserving self-custody rights
- Target Illicit Finance Measures: Include focused provisions to prevent money laundering and sanctions evasion while supporting innovation
- Foster Responsible Innovation: Encourage federal regulators to provide clear guidance and utilize tools like no-action letters and regulatory sandboxes
The discussion draft recognizes the different risk profiles of centralized firms versus decentralized protocols and acknowledges that distributed ledger technology extends beyond financial applications. It also emphasizes that tokenization represents an evolution of financial infrastructure that enhances efficiency and transparency.
Senator Lummis and Chairman Scott are issuing a Request for Information (RFI) for stakeholders to submit feedback on the draft and on a wide range of questions. To participate in the RFI, please submit your feedback to MarketStructure_RFI@banking.senate.gov.
A copy of the discussion draft can be found here.
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