U.S. Senators Propose Crypto Market Structure Framework Ahead of Key Hearing

Top U.S. senators have unveiled a set of principles aimed at establishing regulatory clarity for domestic cryptocurrency markets. The framework, released ahead of a Senate Banking Committee hearing, seeks to distinguish between digital securities and commodities while preventing the emergence of an overarching regulatory watchdog.

The proposal includes anti-money laundering measures designed to foster innovation and encourages federal regulators to adopt flexible approaches like no-action guidance and regulatory sandboxes. "These principles will serve as an important baseline for negotiations," said Banking Committee Chairman Tim Scott, signaling potential bipartisan cooperation on long-awaited crypto regulation.

While stablecoin legislation has seen progress, the crypto industry remains particularly focused on comprehensive market structure rules that could shape the sector's future. The proposal's success hinges on navigating both the Senate Banking and Agriculture Committees—a complex legislative path that will test the digital asset industry's political capital.