Scott Pushes for Regulatory Clarity in Digital Asset Market Structure Legislation
Washington, D.C. – Today, Senate Banking Committee Chairman Tim Scott (R-S.C.) called on his colleagues to advance digital asset market structure legislation that provides regulatory clarity for the industry. Chairman Scott emphasized that the Biden administration’s regulation-by-enforcement approach pushed innovation offshore and created a legal minefield for entrepreneurs. Additionally, the Chairman highlighted the need for legislation that clearly defines which tokens are securities, supports modern trading infrastructure, ensures appropriate protections against illicit finance are in place, and protects investors while fostering innovation.
Last month, Chairman Scott and his colleagues released a set of principles to guide discussions and negotiations for the development of comprehensive market structure legislation. Chairman Scott joined Subcommittee on Digital Assets Chair Cynthia Lummis (R-Wyo.) and Executive Director of the President’s Council of Advisers on Digital Assets Bo Hines for a conversation on the principles and the legislative pathway forward.
Chairman Scott’s opening remarks as delivered:
Good morning to everyone. Thank you for being here. We’re going to get this market structure hearing started. I wanted to begin by celebrating a significant win for the American people.
Just a few weeks ago, the Senate passed the bipartisan GENIUS Act – the soon-to-be first federal framework for payment stablecoins. GENIUS is the first step towards revolutionizing the financial system and updating our payments systems and will secure U.S. global dollar dominance for decades and decades to come. It’s also a win for consumer protection and for national security.
But passing GENIUS is more than just a legislative win. It’s a testament to what’s possible when Congress works together and puts principles before partisan politics. We can deliver actual results for the American people.
From day one, I’ve promised, under my leadership here at the Banking Committee, that would return to what we call regular order – and deliver real results for the American people.
With the GENIUS Act, we did just that. And now, we have an opportunity and a chance to build on that success.
Today’s hearing is the first full committee hearing on digital assets. This is a crucial step toward developing a comprehensive framework that gives innovators the clarity they need and gives investors the protections they deserve.
Because make no mistake: blockchain technology and digital assets are not going away – they are here to stay. The question we should ask ourselves is whether the United States will lead in shaping the future of digital finance, or whether we’ll let other countries like Singapore and the UAE set the standards while American jobs and innovation leave our shores.
Unfortunately, the Biden administration failed to meet the moment. Instead of clear rules, we saw an enforcement-first approach that punished innovation and created a legal minefield for entrepreneurs.
However, the Trump administration understands the importance of innovation, opportunity, and keeping American talent on American soil. It’s time to get back to that pro-growth, pro-America First mindset. Here’s the reality: the market, not Washington, should decide what works.
Our job is to set clear, light-touch guardrails to protect investors, stop fraud, and allow responsible innovation to flourish. But instead, regulators under the Biden administration have sent mixed messages, forcing companies to spend millions and millions of dollars just to guess at what’s legal. In fact, we’ve even seen agencies like the SEC and CFTC contradict each other, while the American people are just to guess, and frankly, left behind. That confusion has consequences. Innovation is leaving. Jobs are leaving. And the global competitors are filling that vacuum.
That’s why Senate Banking Committee Republicans have put forward clear principles for market structure legislation. Principles that recognize the need to clearly define what is a commodity, what is a security, and how digital assets can trade and be custodied in a way that fosters innovation while protecting investors. We don’t need more roadblocks – we need rules that actually work.
That means legislation that will, number one, clearly defines which tokens are securities; two, supports modern trading infrastructure; three, ensures appropriate illicit finance protections are in place; and four, protects investors while fostering innovation. And let’s set the record straight: crypto isn’t lawless – it’s traceable. In fact, crypto companies are helping law enforcement track illicit activity with greater precision than traditional finance allows. The data shows that more illegal activity still happens with cash than with crypto.
Today, we’ll hear from the strong panel about what’s working, what’s broken, and what reforms are needed.
This is not about scoring political points – it’s about protecting investors, rewarding innovation, and ensuring that the next generation of financial technology is “Made in America.” Let’s seize this opportunity – together – and deliver the clarity, consistency, and leadership the American people deserve.
Thank you to our witnesses for participating in today’s hearing, such a very important hearing, and I look forward to the discussion.
Next Article Previous Article