Crypto Regulation: US Senate Banking Updates Market Structure Bill

The US Senate Banking Committee has now released an updated version of the crypto market structure bill. This particular legislative bill, titled the “Responsible Financial Innovation Act 2025,” now includes new provisions centered on developers, bankruptcy, among others, which are vital to the broader crypto industry.

Updated Crypto Market Draft Reveals Protection For Blockchain Developers

US digital asset regulation took a major step forward on Friday as the amended crypto market structure bill advanced out of the House Banking Committee. The bill, which seeks to clearly define the line between digital asset securities and commodities, among other goals, now heads to the Senate for another hearing, though with some modifications.

Most notably, the Responsible Financial Innovation Act now shields blockchain developers from being treated as financial institutions under existing securities laws. Therefore, activities such as providing interfaces or creating wallets are not regulated as securities dealings. However, developers are still accountable under anti-fraud, anti-manipulation, and anti-money laundering laws, and protection does not apply if someone takes custody of users’ funds or exercises central control over a system.

The bill also creates a safe harbor for non-fungible tokens (NFTs), clarifying that unique digital tokens representing art, memberships, tickets, or collectibles are not securities just because they can be resold or may rise in value. Interestingly, secondary sales are safe too, as long as the resale doesn’t raise new capital for the original promoter. But NFTs that are mass-produced, fractionalized, or structured as financial claims remain subject to securities laws. 

Meanwhile, a change to the Bankruptcy section of the act allocates digital commodities and ancillary assets to the same categories as cash and securities in bankruptcy rules. Therefore, when a firm goes bankrupt, customer claims are not limited to cash or traditional securities but now explicitly cover crypto and related digital assets as well.

SEC & CFTC To Set Up Joint Advisory Committee On Digital Assets

In other important news, the updated Responsible Financial Innovation Act 2025 proposes a Joint Advisory Committee on Digital Assets, jointly run by the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC).

Unlike the earlier version of the bill that tilted oversight of crypto markets more heavily toward the SEC, this framework pushes both regulators to work together to study digital assets and provide nonbinding recommendations on rules, oversight, and regulatory harmonization.

The body will include up to 14 non-government members from across the industry, academia, and user base, alongside input from the National Institute of Science and Technology in a non-voting role.  Meanwhile, the total crypto market cap is now valued at $3.76 trillion