U.S. Senate Unveils New Cryptocurrency Regulation Proposal

Senators led by Tim Scott and Cynthia Lummis introduced a cryptocurrency regulatory framework draft on July 22, 2025. The proposal aims to clarify existing laws, potentially influencing asset markets by defining regulator roles and boosting investor confidence.

U.S. Senate Draft Targets Crypto Clarity with Bipartisan Support

Senators Tim Scott, Cynthia Lummis, Bill Hagerty, and Bernie Moreno circulated a draft bill intending to revamp U.S. cryptocurrency regulation. Emphasizing token classification and decentralization, the draft aligns with precedents like the CLARITY Act and Lummis-Gillibrand bill.

The draft enhances clarity on roles for SEC and CFTC, influencing institutional participation by setting reporting and custody standards. Market reactions remain cautious, as the bill aims to prevent innovation from moving abroad while providing robust consumer protection.

“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.” — Cynthia Lummis, U.S. Senator

Crypto Market Awaits Regulatory Effects amid Rising Bitcoin Prices

Did you know? The last major attempt to reshape U.S. crypto regulation, the House CLARITY Act, set a precedent for similar frameworks like this new Senate draft.

Bitcoin (BTC) is priced at $119,810.81 with a market cap of $2.38 trillion as of July 22, 2025, per CoinMarketCap. Trading volume surged 9.73% to $77.50 billion in 24 hours, alongside a price increase of 1.96% within the same period. Over the past 90 days, BTC saw a 28.39% rise.

Coincu research indicates the draft could drive regulatory clarity leading to potential institutional involvement. The bill promises clearer compliance, offering an environment ripe for innovation and secure investor engagement. Meanwhile, crypto markets are likely to witness increased activity as legislative discussions progress.