US Senate Unveils Crypto Market Structure Draft Bill

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The US Senate Cynthia Lummis has unveiled a draft bill aimed at setting clear rules for the crypto market. The proposal is an amendment to H.R. 3633 and is titled the Digital Asset Market Clarity Act. The bill is expected to be marked up on January 15, 2026.

If passed, the legislation could reduce regulatory confusion, improve transparency, and bring more confidence to crypto markets. For traders and investors, this could mean clearer rules and fewer sudden enforcement actions, which may help support long-term institutional participation in assets like Bitcoin and Ethereum.

What’s Inside the Draft Crypto Market Structure Bill

The bill explains how digital assets should be overseen by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). It aims to reduce overlap between agencies and provide a standard framework for how crypto assets are issued, traded, and disclosed.

Supporters say this clarity could limit market manipulation and create a more stable environment for both retail and institutional investors.

Stablecoin Rules Explained

One of the key provisions focuses on payment stablecoins. The bill bans companies from offering interest or yield simply for holding stablecoins. This means users would not earn returns just by keeping stablecoins in their wallets.

However, the draft allows activity-based rewards, including incentives tied to payments, transfers, wallet usage, loyalty programs, or platform participation.

DeFi and Developer Protections

The bill includes the Blockchain Regulatory Certainty Act, which provides protections for blockchain developers who do not control user funds. Developers who only create or maintain software would not be treated the same as financial intermediaries.

This section aims to protect non-controlling developers while still allowing oversight where companies actively manage or move user assets.

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How the Bill Treats Crypto Assets

The draft introduces the term “network tokens,” also referred to as ancillary assets. These are tokens whose value depends on the work of a project team. Under the bill, such tokens may be treated as non-securities, including when they are part of exchange-traded products.

This classification could affect well-known tokens such as XRP and Solana, depending on how the final rules are applied.

Community Reaction

Supporters of the bill say it could help make the United States a global hub for crypto innovation while improving investor protection. Senate sponsors argue the proposal balances growth with accountability.

However, critics, including Senator Elizabeth Warren, have raised concerns that the bill could weaken the SEC’s authority. She has warned about possible risks to retirement funds and pointed to what she describes as a “tokenization loophole.”

Several issues remain unresolved, including ethics-related concerns and details around stablecoin oversight. The bill is still unfinished and could change before any final vote.

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FAQs

What is the Digital Asset Market Clarity Act?

It’s a draft U.S. bill that defines how crypto assets are regulated, clarifying SEC and CFTC roles to reduce confusion and improve market confidence.

How could this bill change the way crypto projects launch in the U.S.?

If enacted, projects may have clearer disclosure paths and compliance expectations at launch. This could reduce legal risk for startups and encourage more crypto development to stay within the U.S. instead of moving offshore.

Who could feel the impact first if the bill progresses?

Crypto exchanges, stablecoin issuers, and institutional investors would likely adjust compliance and product strategies early. Retail users may notice changes later through clearer disclosures, token listings, or reward structures.