July 22, 2025

Scott, Lummis, Colleagues Release Market Structure Discussion Draft, Issue Request for Information from Stakeholders

The discussion draft builds on the CLARITY Act, which passed the House of Representatives last week with strong bipartisan support.

Washington, D.C. – Chairman Tim Scott (R-S.C.), Subcommittee on Digital Assets Chair Cynthia Lummis (R-Wyo.), Senator Bill Hagerty (R-Tenn.), and Senator Bernie Moreno (R-Ohio) are releasing an initial discussion draft of digital asset market structure legislation covering issues under the Banking Committee’s jurisdiction. The discussion draft builds on the CLARITY Act, which passed the House of Representatives last week with strong bipartisan support. Along with the discussion draft, Chairman Scott and his colleagues are issuing a Request for Information (RFI) for stakeholders to submit feedback on the draft and on a wide range of questions.

“My colleagues and I in the House and Senate share the same goal: to provide clear rules of the road for digital assets that protect investors, foster innovation, and keep the future of digital finance anchored in America. I’m grateful for the hard work of our House counterparts to craft smart, bipartisan legislation, and I look forward to building on their work here in the Senate. Working with President Trump, we can deliver a comprehensive, bipartisan regulatory framework for digital assets,” said Chairman Scott.

“The time for regulatory uncertainty in the digital asset space has come to an end,” said Senator Lummis. “This discussion draft represents a thoughtful, balanced approach that will provide the clarity our innovators need while providing robust consumer protections. We cannot allow regulatory confusion to continue driving American innovation overseas. Market structure legislation will establish clear distinctions between digital asset securities and commodities, modernize our regulatory framework, and position the United States as the global leader in digital asset innovation.”

“For too long, outdated laws and regulatory uncertainty around digital asset market structure have hindered American innovation and left consumers without adequate protections,” said Senator Hagerty. “This discussion draft demonstrates a strong commitment to unlocking the full potential of the digital asset economy by delivering responsible legislation that reflects input from stakeholders, fosters innovation, establishes consistent guardrails, and ensures the United States remains a global leader in digital asset development.”

“The GENIUS Act was a critical stride toward ensuring the United States is a leader in Digital Assets,” said Senator Moreno. “This draft represents the next step in putting a bipartisan regulatory framework on President Trump’s desk and I look forward to continuing our important work to encourage innovation, protect consumers, and strengthen national security and US dollar dominance.”

The discussion draft takes important steps to:

  • Define Ancillary Assets – The discussion draft clearly defines an “ancillary asset” to clarify which digital assets are not securities.
  • Create Disclosure Requirements – The discussion draft creates disclosure requirements that are tailored for offers, sales, or distributions of ancillary assets.
  • Promulgate New Rules – The discussion draft requires the Securities and Exchange Commission (SEC) to promulgate new rules:
    • Regulation DA: To exempt certain offers or sales of ancillary assets from SEC registration, including offers of sales that do not exceed $75 million in gross proceeds per year over four years.
    • Investment Contracts: To more clearly define what constitutes an investment contract.
  • Modernize Securities Regulations – The discussion draft directs the SEC to tailor existing requirements to digital asset activity, so that regulations are no longer outdated, unnecessary, or unduly burdensome in light of the unique technological characteristics of digital assets.
  • Prevent Illicit Finance – The discussion draft requires the creation of examination standards for digital assets and encourages private sector entities to partner with federal law enforcement, to detect and deter illicit finance.
  • Promote Responsible Banking Innovation – The discussion draft ensures financial holding companies can use a digital asset or distributed ledger system to perform, provide, or deliver any activity, function, product, or service that banks are otherwise authorized by law to perform, provide, or deliver.

For the full text of the discussion draft, click here. In addition to the discussion draft, Chairman Scott and his colleagues are calling on stakeholders to submit their feedback on a wide range of questions around:

  • Regulatory Clarity and Tailoring
  • Investor Protection
  • Trading Venues and Market Infrastructure
  • Custody
  • Illicit Finance
  • Banking
  • Innovation
  • Preemption

To participate in the Request for Information (RFI), please submit your feedback to MarketStructure_RFI@banking.senate.gov.