Market News

US Crypto Regulation Takes a Leap Forward with Updated Market Structure Bill

The US Senate Banking Committee has unveiled an updated "Responsible Financial Innovation Act 2025," aimed at refining the landscape of crypto regulation.

This legislative update includes crucial provisions protecting blockchain developers from being categorized as financial institutions under existing securities laws.

Activities such as providing crypto wallets will no longer be classified as securities transactions, although developers must still comply with anti-fraud and anti-money laundering laws.

Additionally, the bill stipulates a safe harbor for non-fungible tokens (NFTs), ensuring that they are not classified as securities based solely on their resale value.

However, mass-produced or financialized NFTs will still fall under securities regulations, emphasizing the need for clarity in classification.

Moreover, a critical amendment regarding bankruptcy now includes digital commodities in the same category as cash, offering more protection for customer claims during insolvency proceedings.

The bill also proposes a Joint Advisory Committee on Digital Assets, comprising members from both the SEC and CFTC, aimed at better oversight and collaboration on crypto matters.

This new approach actively seeks to balance the regulatory responsibilities between both agencies, focusing on the needs of the digital asset ecosystem.

As the crypto market continues to expand, currently valued at $3.76 trillion, these legislative developments appear significant for the industry's future.

These updates represent a concerted effort by US regulators to foster innovation while ensuring investor protection in the evolving landscape of digital assets.