Sen. Lummis: Market Structure is Most Important Piece of Digital Asset Legislation
Senator Cynthia Lummis declared that a new digital asset market structure legislation is the most important in U.S. history, aiming to provide clear regulatory frameworks for digital assets by dividing oversight between the SEC and CFTC. The legislative efforts, including the CLARITY Act and Responsible Financial Innovation Act, propose rules for asset definitions, regulatory jurisdictions, developer protections, and anti-money laundering compliance. This bipartisan initiative builds on years of refinement, addressing regulatory uncertainty since 2021, and seeks to integrate digital assets into federal banking and tax systems. Key milestones in 2025 include the CLARITY Act passing the House, the GENIUS Act on stablecoins becoming law, and ongoing Senate efforts to reconcile proposals for a unified bill by year-end. The Trump administration prioritizes cryptocurrency growth, reversing past restrictions and supporting regulations to make the U.S. a global crypto hub.
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Introduction to Historic Legislation
Senator Cynthia Lummis has described the newly proposed digital asset market structure legislation as historic and “the most important piece of digital asset legislation in United States history.” This comprehensive framework aims to provide clear regulatory rules by dividing oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The legislation is expected to pave the way for massive integration of digital assets by traditional financial institutions.
Bipartisan Collaboration and Legislative Journey
Senator Lummis, a Republican from Wyoming, has been working closely with Senator Kirsten Gillibrand, a Democrat from New York, on this effort since 2022. Their partnership has produced strong, well-developed proposals that are now ready to become law. The foundation for their work was laid in 2021 with the introduction of the Responsible Financial Innovation Act, which has since been refined to offer a clear blueprint for the digital asset industry.
Key Developments in 2025
The pace of legislative action has accelerated significantly in 2025. Earlier this year, House Republicans introduced the Digital Asset Market Clarity Act (CLARITY Act), which was passed in July with bipartisan support. This act proposes dividing regulatory jurisdiction: the SEC would oversee securities-like digital assets, while the CFTC would regulate digital commodities with decentralized networks. The bill also includes protections for developers of non-custodial systems and mandates anti-money laundering compliance for exchanges.
Stablecoin Regulation and the GENIUS Act
Another key milestone in 2025 was the passage of the GENIUS Act. Signed into law in July by President Donald Trump, this legislation focuses specifically on stablecoins. It mandates that stablecoin issuers hold high-quality reserves to back their tokens while granting law enforcement the authority to freeze assets as needed. This represents a significant push for greater stability and accountability within the digital asset ecosystem.
Next Steps for Unified Legislation
As of November 2025, efforts are focused on reconciling the CLARITY Act with the Senate Banking Committee’s draft of the Responsible Financial Innovation Act. Senator Lummis, now chairing a subcommittee on digital assets, has been holding hearings to build consensus. A competing framework from Senate Democrats emphasizes consumer protection, sparking debates over budget concerns and decentralized finance. Despite some delays, key committees aim to pass a final unified bill by December 2025.
Trump Administration’s Push for Regulatory Clarity
President Trump’s administration has made cryptocurrency regulation a top priority. On January 23, an executive order reversed previous restrictions and established a new working group involving the chairs of the SEC and CFTC. This group has been tasked with developing recommendations to foster growth in the cryptocurrency industry. The GENIUS Act and recent federal banking regulator guidelines, which encourage traditional banks to engage in cryptocurrency services, reflect these efforts.