U.S. Senators Unveil New Crypto Regulation Bill as Industry Pushes for Legal Clarity

U.S. senators late on Monday introduced draft legislation that would establish a long-awaited regulatory framework for cryptocurrency markets, a move that could reshape how digital assets operate in the United States.

If passed into law, the bill would clarify the roles of U.S. financial regulators and define when crypto tokens qualify as securities or commodities — an issue the industry has long argued is critical for growth and compliance.

Clearer Rules for Crypto Tokens and Market Oversight

The legislation outlines criteria for classifying crypto assets, addressing a core source of uncertainty that has plagued the sector for years.

It would also grant the U.S. Commodity Futures Trading Commission (CFTC) authority over spot crypto markets, a jurisdiction the industry prefers over the U.S. Securities and Exchange Commission (SEC).

Stablecoin Debate Rekindled as Banks and Crypto Firms Clash

The bill includes provisions tied to last year’s stablecoin legislation, which created a federal framework for dollar-pegged crypto tokens.

Banking groups have pushed lawmakers to close what they see as a loophole allowing intermediaries to pay interest on stablecoins, warning it could drive deposits out of insured banks and threaten financial stability.

Crypto companies dispute that claim.

“What is threatening progress is not a lack of policymaker engagement, but the relentless pressure campaign by the Big Banks to rewrite this bill to protect their own incumbency,” said Summer Mersinger, CEO of the Blockchain Association, a crypto industry trade group.

“Their demands to eliminate stablecoin rewards are ⁠designed to choke off consumer choice and kill innovative financial products before they can compete.”

Interest Restrictions with Room for Rewards

Under the draft, crypto companies would be barred from paying interest solely for holding a stablecoin. However, the bill allows rewards and incentives linked to specific activities such as payments or loyalty programs.

The SEC and CFTC would also be required to issue a joint rule mandating clear disclosures related to stablecoin rewards.

Political Momentum and Uncertainty Ahead

The Senate Banking Committee is scheduled to debate the bill and consider amendments this week, while the Senate Agriculture Committee is developing its own version.

Cody Carbone, CEO of crypto trade group The Digital Chamber, welcomed the progress.

“It was encouraging to ⁠see the process continue to move forward,” he said.

“We will remain actively engaged to improve the text as the bill continues to evolve and are encouraged by the continued momentum to advance a market structure bill this year.”

Despite growing momentum, some lobbyists remain skeptical the bill will pass as Congress shifts attention toward the 2026 midterm elections, leaving crypto firms reliant on regulatory guidance that could change under future administrations.