A comprehensive Senate draft bill lays the foundation for reform of United States encrypted monetary regulation, proposes clear classification, limits to SEC regulation and establishes exemptions to accelerate compliance encryption innovation.
The Senate Bill is based on the CARITY Bill.
Senator Tim Scott, Cynthia Ramis, Bill Hagreve and Bernie Moreno announced on 22 July that they had published a draft discussion on the digital asset market structure following the cross-party vote in the House of Representatives on the CLARITY bill. According to the bulletin:
The draft was based on the Clear Bill, which was strongly supported by both parties last week.
The draft seeks to seek public opinion on a wide range of regulatory issues, including trusteeship, investor protection, market infrastructure, illegal financing and innovation. It instructed the United States Securities and Exchange Commission (SEC) to enact a “DA Regulation”, which would allow certain tokens to be issued with exemptions from the registration requirement while keeping within a clearly defined threshold.
A central feature of the legislation is the formal classification of “auxiliary assets”, which are digital tokens that are not considered securities under certain conditions. The draft declaration states that: “If the issuer meets the prescribed criteria and submits a self-certification to the SEC, the supporting asset shall not be considered a security and the secondary transaction of the supporting asset shall not be considered a security transaction.” The Act introduced mandatory disclosure requirements, but limited the 60-day window period during which the SEC challenged the issuer's status and required “confirm evidence” to override self-certification.
On July 18, 2025, the National Innovation Act (GENIUS) to Guide and Establish the United States Stable Currency was signed into law. This landmark legislation created the first federal regulatory framework for the payment of stable coins, requiring the use of liquid assets at a 1:1 ratio to support and promote consumer protection. Meanwhile, on 17 July 2025, the House of Representatives passed the Digital Assets Market Clarity Act (CLARITY). The Act aims to establish clear rules for digital assets by allocating supervision of “digital goods” to the Commodity Futures Trading Commission (CFTC) and “digital assets securities” to the Securities and Exchange Commission (SEC). The bill is currently awaiting consideration by the Senate.
Senator Hagtti stressed the urgency of reform:
Over time, outdated laws and regulatory uncertainties surrounding the structure of the digital asset market have prevented innovation in the United States and left consumers without adequate protection.
He added: “The draft discussion demonstrates a strong commitment to the full release of the full potential of the digital asset economy, through responsible legislation that reflects stakeholders' views, promotes innovation, establishes a consistent regulatory framework and ensures that the United States maintains its global lead in digital asset development.”