The U.S. Senate’s work on the crypto industry’s top policy priority — a bill to establish the regulatory workings of crypto markets in the U.S. — advanced further on Friday with the private circulation of a new draft bill that outlines protections for crypto developers and bankruptcy guidelines for some digital asset issuers.
Despite a significant lobbying win this year, with the U.S. House of Representatives passing the Digital Asset Market Clarity Act as a broad starting point, the Senate is pursuing its own version, likely to take the lead as the policy most likely to be enacted. The new version obtained by RialCenter establishes legal protections for those “developing, publishing, constituting, administering, maintaining or otherwise distributing” a distributed ledger or decentralized finance messaging system. It also includes a section on bankruptcy, amending existing law to account for “ancillary assets,” clarifying that during bankruptcy, ancillary assets and digital commodities should be treated as customer property.
Though the bill is circulating, it’s uncertain whether this version supported by key Republicans in the Senate Banking Committee will gain backing from their Democratic counterparts or the Senate Agriculture Committee, which must also support the effort.
While the House’s Clarity Act passed with wide bipartisan support, the Senate’s requirement for 60 votes places a higher demand on Republican leaders to secure several Democratic votes. Previously, when the Senate’s major crypto legislation, the GENIUS Act, was considered, President Trump encouraged passing it as-is rather than modifying its language.
This approach led to the Senate’s stablecoin provisions becoming law, marking a significant policy achievement for the industry.
While the two chambers’ market-structure efforts share similarities, notable differences have arisen, particularly regarding the transition of crypto assets from securities to commodities. This is a core issue in the legislation, as it determines which agency may oversee specific digital asset approaches. The timing of the Senate’s work remains uncertain. Initially, Trump aimed for completion by August, a deadline now passed. Senate Banking Committee Chairman Tim Scott had set a Sept. 30 target, which he claimed could still be met. Although Senator Cynthia Lummis supported this timeline, she later suggested that it could be signed by Thanksgiving.
The Senate has returned from its August break, facing a full agenda with budgetary demands and other matters, but crypto remains a top priority, consistently drawing bipartisan support. The Senate Banking Committee previously released broad priorities, held a hearing, and published a discussion draft in July to solicit input.
This latest comprehensive version of the bill represents a step toward passage. It may soon undergo a markup hearing, allowing senators to amend the legislation, followed by a Senate floor vote requiring 60 votes to proceed. To secure Democratic support, this version will likely need revisions based on their proposals.
Before any bill can become law, matching legislation must pass both the Senate and House. If this bill clears the Senate, the House will then vote, and based on the Clarity Act’s margin of victory, it is likely to pass easily.
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