Senate Banking Committee Chairman Tim Scott has stated that as many as 18 Democratic senators could support sweeping digital asset market structure legislation.
The South Carolina Republican is actively engaging with Democratic colleagues, including those outside the Banking Committee, to build momentum ahead of a planned September bill introduction.
House progress and Senate response
This outreach follows the House’s passage of the Digital Asset Market Clarity Act on July 17, which saw notable bipartisan support with 78 Democrats joining a 294-134 vote.
The House bill defines regulatory boundaries between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), while establishing registration pathways for qualifying digital asset platforms.
Senator Scott, along with Senators Cynthia Lummis, Bill Hagerty, and Bernie Moreno, released a draft of the Responsible Financial Innovation Act of 2025 on July 22.
This Senate proposal builds on the House’s work by introducing new definitions for ancillary assets, updating disclosure requirements, and expanding banking provisions for financial holding companies offering digital asset services.
regulatory framework development
The Senate draft directs the SEC and CFTC to create joint registration processes for platforms listing tokens that pass functional decentralization and public float tests.
Tokens meeting these criteria would fall outside the scope of securities laws, with disclosure requirements scaled by market capitalization.
Banking supervisors are instructed to recognize qualified custodians of both stablecoins and digital assets, enforcing unified segregation and audit standards.
The proposal also introduces exemptions for some ancillary asset sales and refines federal investment contract definitions.
calls for clarity and modernization
Senator Lummis emphasized the importance of clear regulation to retain innovation in the U.S. She said:
“This legislation will establish clear distinctions between digital asset securities and commodities while modernizing regulatory frameworks.”
Senator Hagerty noted that outdated laws have stifled innovation and left consumers without protections. The Banking Committee has also issued a Request for Information on over 35 topics to gather public input for finalizing the bill.
