Four US Senators Propose Clear Classification of Digital Assets, Limit SEC Oversight, and Create Exceptions to Promote Blockchain Technology Innovation.
The US Senate has officially entered the cryptocurrency legislative race as four senators Tim Scott, Cynthia Lummis, Bill Hagerty, and Bernie Moreno published a comprehensive draft on digital asset market structure on July 22. This move came immediately after the US House passed the CLARITY Act with bipartisan support, marking an important step in building a unified legal framework for the trillion-dollar blockchain industry.
The discussion draft inherits the spirit of the CLARITY Act, focusing on addressing long-standing legal shortcomings that have hindered the development of digital asset markets in the US. The document proposes a clear regulatory framework for key areas including asset custody, investor protection, market infrastructure, and prevention of illegal financial activities.
The most notable point of the draft is the formalization of the "ancillary assets" concept - digital tokens that under certain conditions will not be considered securities. According to the proposed regulations, these auxiliary assets will be exempt from strict SEC registration requirements, provided the issuing organization complies with specified criteria and submits a self-certification to the regulatory body.
Specifically, the bill requires the SEC to issue "Regulation DA" - a regulation allowing registration exemptions for certain token issuances when meeting predefined thresholds. This mechanism is designed to create a clear legal corridor for blockchain startup projects while maintaining necessary oversight to protect investors.
Limiting SEC Powers and Enhancing Transparency
One of the revolutionary aspects of the draft is imposing time limits on the SEC for challenging the legal status of issuers. The regulatory body will only have 60 days to raise objections and can only overturn certification with "clear and convincing evidence". This aims to end the prolonged legal uncertainty many technology companies have faced.
The draft also runs parallel to other legislative efforts already deployed. The GENIUS Act on stablecoin was signed into law on July 18, 2025, establishing the first federal management framework for payment stablecoins with a 1:1 liquidation asset backing requirement. The CLARITY Act passed the US House on July 17, 2025, dividing supervisory powers between CFTC for "digital commodities" and SEC for "digital asset securities".
Senator Hagerty emphasized the importance of this reform in the context of increasingly fierce global competition. He affirmed that outdated regulations and legal ambiguity have constrained innovation in the US, while also leaving consumers without necessary protective measures. The draft is expected to "unleash the comprehensive potential of the digital asset economy through a responsible legal framework".
