Senate Banking Committee members privately circulated a new draft of a crypto market structure bill on Friday that further defines how digital-asset trading will be regulated in the U.S. The version adds legal protections for developers and new bankruptcy guidance for certain issuers.
Unlike the House-passed Digital Asset Market Clarity Act, which served as a broad framework, the Senate’s draft is lengthier and specifies protections for entities “developing, publishing, constituting, administering, maintaining or otherwise distributing” a distributed ledger or a decentralized finance messaging system. It also amends bankruptcy law to treat “ancillary assets” and digital commodities as customer property during insolvency proceedings.
Passage is uncertain: the Senate needs 60 votes to advance legislation, and it’s unclear whether the draft — backed by key Republicans on the Banking Committee — will win enough Democratic support or clearance from the Agriculture Committee, which also has jurisdiction.
Senators have been working from earlier discussion drafts and hearings this summer. Tim Scott had set a Sept. 30 target, while Cynthia Lummis later suggested the bill could reach the president by Thanksgiving — but timing remains fluid amid other congressional priorities.
If the committee moves to a markup, senators could amend the text before a floor vote. Any Senate-passed measure would still need to be reconciled with the House version; the House previously approved the Clarity Act by a wide margin.
Why it matters: the draft tries to settle which agency oversees different digital assets, clarifies how tokens might shift from security to commodity status, and changes bankruptcy and customer-protection rules — all of which could reshape compliance burdens for exchanges, custodians and issuers. Companies and investors should monitor developments closely and consult legal counsel, as the bill’s language could materially affect liability, recovery rights and market structure.
Source: CoinDesk. Read the original coverage for full details.