In brief:
₿- Lummis urges Congress to pass a U.S. crypto market structure bill to clarify SEC and CFTC oversight and restore regulatory certainty for digital asset firms.
₿- The proposal strengthens investor protections, introduces stricter stablecoin rules, and includes a $200 tax exemption for small crypto transactions.
U.S. Senator Cynthia Lummis has renewed her push for Congress to pass comprehensive crypto market structure legislation, warning that prolonged regulatory uncertainty continues to undermine the United States’ leadership in digital assets. As bipartisan discussions resume on Capitol Hill, Lummis argued that years of unclear federal oversight have driven crypto companies, investment capital, and skilled workers out of the country.
Clear SEC and CFTC jurisdiction seen as cornerstone of reform
According to the Wyoming senator, the lack of statutory guidance has allowed policy to be shaped through enforcement actions rather than clear rules. She said Congress must act to provide certainty for investors and businesses alike, or risk losing America’s competitive edge in blockchain and financial technology.
A central objective of the proposed legislation is to resolve jurisdictional disputes between federal regulators. The bill would clearly define the respective roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission, an issue that has been a major source of confusion for crypto firms operating in the U.S.
Under the framework, digital assets that do not convey ownership rights or profit entitlements would generally fall under CFTC oversight. Tokens associated with investment contracts or profit expectations would remain subject to SEC regulation. Supporters believe this distinction would significantly reduce regulatory friction and give companies predictable compliance standards.
Lummis has described the proposal as an expanded and strengthened version of earlier bipartisan efforts, drawing on elements of the Responsible Financial Innovation Act and the CLARITY Act while adapting them to current market realities.
Investor protection and stablecoin oversight take center stage
Investor safeguards are a major focus of the bill. Crypto firms would be required to segregate customer assets from corporate funds, while rehypothecation of customer collateral would be prohibited. Annual independent audits would become mandatory, addressing systemic risks exposed by past exchange failures.
Stablecoin regulation is another key component. Issuers would be required to maintain 100% reserves backing outstanding tokens and operate within regulated institutional structures. While a separate Lummis–Gillibrand stablecoin bill is advancing independently, the market structure legislation reinforces broader federal standards for dollar-backed digital assets.
Tax relief, compliance rules, and legislative uncertainty
The proposal includes a $200 de minimis tax exemption for crypto transactions, eliminating capital gains reporting requirements for small, everyday payments. Advocates argue the change would encourage broader consumer adoption by making digital assets easier to use for routine transactions.
At the same time, the bill expands anti-money laundering and counter-terrorism financing obligations for digital asset service providers, including cryptocurrency ATMs. Lawmakers say the measures balance innovation with national security concerns.
With congressional markups delayed until early 2026 and competing legislative priorities, passage remains uncertain. Still, as Lummis approaches retirement in 2027, she has made crypto market structure reform a defining goal of her Senate tenure, positioning the legislation as critical to the future of digital assets in the U.S.
Stay informed,
Rodcas Consulting Group