U.S. Senate Diverges on Crypto Market Structure Bill, Delaying Progress

The crypto market structure bill faces an uncertain future as the U.S. Senate signals disagreement with the House-passed CLARITY Act. Jake Chervinsky, legal chief at Variant Fund, notes the Senate has "different ideas" about regulatory frameworks, suggesting a prolonged legislative process.

Senators introduced a draft proposal on July 22 that diverges from the House approach, creating a new "ancillary" token category and expanding SEC oversight. This contrasts sharply with the CLARITY Act's provisions, which cleared the House with relative ease.

Market participants anticipating swift passage of crypto legislation may face disappointment. The Senate's alternative framework indicates deeper philosophical divides about digital asset regulation that could extend debates well beyond the September timeline some had projected.