Republican Senators Scott, Lummis, Tillis, Hagerty Push For Digital Asset Market Structure Rules

Bitcoin Magazine

Republican Senators Scott, Lummis, Tillis, Hagerty Push For Digital Asset Market Structure Rules

Republican senators have released principles to guide digital asset market structure legislation, marking a significant step toward regulatory clarity that could benefit Bitcoin and the broader crypto industry. Senate Banking Chairman Tim Scott (R-SC), along with Senators Cynthia Lummis (R-WY), Thom Tillis (R-NC), and Bill Hagerty (R-TN), announced the framework balancing innovation with consumer protection. 

The principles address regulatory uncertainty that has plagued Bitcoin and digital assets, emphasizing clear jurisdictional boundaries between agencies and modernized oversight approaches for digital assets.  

“Since taking over as Chairman, I’ve led a new approach to digital assets regulation,” said Chairman Scott. “These principles will serve as an important baseline for negotiations on this bill, and I’m hopeful my colleagues will put politics aside and provide long-overdue clarity for digital asset regulation.” 

The framework covers six key areas, beginning with clearly defining Bitcoin and other digital assets’ legal status. The senators propose establishing statutory distinctions between digital asset securities and commodities, providing industry participants predictability. 

Senator Lummis, a vocal Bitcoin advocate, emphasized America’s competitive position: “While the European Union and Singapore have established clear regulations, the U.S. continues to sit on the sidelines while the digital asset industry seeks greener pastures. That changes today.” 

The principles call for clear regulatory jurisdiction allocation, preventing any single regulator from gaining comprehensive authority over digital assets. The framework aims to distinguish between centralized firms, decentralized protocols like Bitcoin’s network, and non-custodial software platforms. 

Importantly, the proposed legislation aims to preserve Bitcoin self-custody rights and recognize the blockchain technology powering Bitcoin for non-financial purposes shouldn’t face financial product regulations. 

The framework modernizes regulations through new SEC exemptions for digital asset fundraising and tailored compliance pathways that could benefit Bitcoin-related businesses. It recognizes tokenization as infrastructure evolution. 

Consumer protection remains prioritized with this market structure, seeing centralized Bitcoin exchanges and intermediaries subject to registration and risk management requirements, including capital standards and custody protections for Bitcoin holdings.  

Senator Hagerty noted regulatory uncertainty’s impact on Bitcoin innovation: “A lack of clear regulatory authority has forced digital asset innovation beyond our borders. By working towards a reasonable framework, we can bolster our nation’s economy and protect consumers.”

The release of these market structure principles comes on the heels of significant legislative momentum for digital assets, including the recent Senate passage of the GENIUS Act— stablecoin legislation that Senator Hagerty co-authored alongside Chairman Scott and Senator Lummis. As Senator Hagerty noted after the GENIUS Act’s passage, “the United States is one step closer to becoming the crypto capital of the world,” and these new market structure principles represent the next crucial step in that journey.

This post Republican Senators Scott, Lummis, Tillis, Hagerty Push For Digital Asset Market Structure Rules first appeared on Bitcoin Magazine and is written by Jenna Montgomery.