Key Points
- U.S. senators have unveiled a draft bill to create a regulatory framework for cryptocurrency.
- The bill would clarify the SEC’s and CFTC’s jurisdiction over different types of crypto assets.
- It would also establish a federal framework for stablecoins, with restrictions on interest payments.
- The bill’s future is uncertain as Congress pivots to the 2026 midterm elections.
U.S. senators have unveiled a draft of a new bill that could finally bring some clarity to the wild world of cryptocurrency. The legislation, if it becomes law, would create a regulatory framework for the industry, something that crypto companies have been begging for for years. They argue that this kind of legal clarity is “existential” to the future of digital assets in the United States.
One of the most important parts of the bill is that it would finally define when a crypto token is a security (regulated by the SEC) and when it’s a commodity (regulated by the CFTC). This has been a huge source of confusion and legal battles for the industry. The bill would also give the CFTC, which is generally seen as more crypto-friendly than the SEC, the authority to police the spot crypto markets.
The bill also addresses the hot-button issue of stablecoins, which are crypto tokens pegged to the U.S. dollar. Banks have been worried that crypto companies could start paying interest on stablecoins, which would pull deposits out of the traditional banking system.
The new bill seeks to strike a balance. It would prohibit companies from paying interest solely for holding a stablecoin. Still, it would allow them to offer rewards for activities such as sending a payment or participating in a loyalty program.
The crypto industry has been spending heavily on lobbying in Washington, and it seems to be paying off. President Trump has courted the industry, and the House of Representatives passed its own version of a crypto bill last year.
However, the path forward is still uncertain. The Senate talks stalled last year over issues like anti-money-laundering rules. With the 2026 midterm elections on the horizon, some are skeptical that Congress will have time to get this landmark bill across the finish line.
