The Senate Banking Committee has released a discussion draft bill to address the structure of the crypto market, forming part of a broader legislative effort to align with the House’s Clarity Act.

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Ancillary assets

The narrative

The Senate Banking Committee has introduced a discussion draft market structure bill outlining its perspective on how the U.S. Securities and Exchange Commission should regulate digital assets. The draft introduces the concept of an “ancillary asset” and invites public feedback by early August.

Why it matters

While the House advanced its Clarity Act last week, the Senate must still approve market structure legislation before it can be signed into law by President Donald Trump. This week, the Senate Banking Committee has highlighted its focus on the SEC’s role, differing somewhat from the House’s approach.

Breaking it down

The Senate Banking Committee released a discussion draft for the Responsible Financial Innovation Act of 2025, allowing the public two weeks to respond to a range of questions posed about the draft.

The draft defines “ancillary asset” in the context of potential SEC oversight.

Rashan Colbert, the U.S. policy director for the Crypto Council for Innovation, noted that the draft clearly aligns with the Banking Committee’s jurisdiction.

“Within the bill, there is mention of a digital commodity, but no explicit definition is provided. Furthermore, there’s no details on how the trading of these digital commodities would function, which falls under the Agriculture Committee’s authority,” he explained. “This draft is clearly a work in progress, and they’ve solicited responses to help clarify their stance.”

Colbert mentioned that the legislative process in the Senate might differ from the House’s passage of the Clarity Act, but he anticipates collaboration between the Agriculture and Banking Committees on market structure legislation.

Any advancing bill will require input from Democrats, given the Senate’s 60-vote threshold for moving legislation. Currently, the discussion draft was issued alongside comments from majority members.

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This week

This week, a Senate Agriculture Committee meeting to discuss Brian Quintenz’s nomination as chair of the Commodity Futures Trading Commission has been rescheduled to July 28.

Elsewhere:

• Crypto companies spent nearly $7 million in lobbying during Q2 2025. Coinbase allocated almost $1 million on digital assets issues.
• President Trump visited the Federal Reserve, discussing its renovation costs with Chair Jerome Powell.
• Galaxy Digital released a summary of Trump’s crypto policy changes over the first six months of his presidency.

If you have thoughts or questions on topics for next week or any feedback, feel free to email me or reach out on Bluesky.

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See you next week!