United States Senators Bill Hagerty, Tim Scott, Cynthia Lummis, and Thom Tillis have released a set of principles aimed at guiding the development of comprehensive market structure legislation. The senators intend to engage with industry participants, legal and academic experts, and government stakeholders in discussions on the bill’s text.
Senator Bill Hagerty emphasized the need for clear regulatory authority to prevent digital asset innovation from moving abroad. “For too long, a lack of clear regulatory authority has forced digital asset innovation beyond our borders and subjected issuers, exchanges, and developers to crippling uncertainty,” he stated. He expressed hope that a “reasonable, light-touch market structure framework” would strengthen the economy and protect consumers.
Chairman Tim Scott highlighted his efforts since assuming leadership of the Senate Banking Committee. “Since taking over as Chairman, I’ve led a new approach to digital assets regulation,” he said. Scott aims to build on past successes like the GENIUS Act while advancing market structure legislation in the Senate.
Senator Cynthia Lummis pointed out America’s need for legislation that encourages responsible innovation and consumer protection. She noted that other regions like the European Union and Singapore have already established clear regulations. “That changes today,” she asserted, as she collaborates with Scott to define boundaries between securities and commodities.
Senator Thom Tillis stressed the importance of providing legal clarity without hindering innovation. “These principles strike the right balance by protecting consumers, promoting innovation, and clearly defining the roles of regulators in a rapidly evolving market,” he remarked.
The released principles include clearly defining digital assets’ legal status, allocating jurisdiction among regulators, modernizing regulation to foster innovation, protecting those involved in digital asset transactions, targeting illicit finance measures while promoting innovation, and encouraging federal financial regulators to support responsible innovation.
