TL;DR:
- Senators Kirsten Gillibrand and Cynthia Lummis are negotiating an optimistic, comprehensive crypto bill.
- The draft bill seeks to divide jurisdiction between the SEC and CFTC and define the term “ancillary assets.”
- The goal is to share a bill draft this week and hold a hearing for amendments and a vote next week.
Efforts are intensifying in Washington D.C. to pass a far-reaching cryptocurrency bill. Lawmakers hope the document will ultimately reach President Donald Trump’s desk. This legislative push has gained strong bipartisan momentum, with Senators Kirsten Gillibrand (D-N.Y.) and Cynthia Lummis (R-Wyo.) leading the negotiations.
Both senators offered statements on Tuesday at the Blockchain Association Policy Summit, painting an optimistic picture of the progress. Gillibrand asserted that “Nothing is holding up this bill,” and highlighted a recent, successful bipartisan meeting. This effort seeks to build upon the version passed by the House in July, known as the Digital Asset Market Clarity Act.
The Senate bill is ambitious, addressing issues the House did not cover, such as the regulation of decentralized finance (DeFi) exchanges. The draft being negotiated in the Senate Banking Committee aims to allocate jurisdiction between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Additionally, it will create a new term for “ancillary assets” to clarify which cryptocurrencies are not considered securities, a crucial point for the Bipartisan Senate Crypto Regulation.
A Game of “Three-Dimensional Chess” with the White House
Time is running out for crypto regulation. Lummis, a member of the Senate Banking Committee, indicated that the goal is to share a draft of the bill by the end of this week and hold a hearing next week to amend and vote on it. Gillibrand expressed great optimism, noting that the final draft will be “so strong” as it tackles more issues than the House version.
Negotiations extend beyond the Capitol. Lummis described the process as “a little bit of three-dimensional chess,” as they are working not only with Democrats and Republicans but also with the industry and the White House.
So far, one point of friction has been the inclusion of ethics provisions. Democrats are pressing to limit elected officials and their families from issuing, endorsing, or profiting from digital assets while in office—a sensitive topic given the estimated $620 million benefit from the Trump family’s crypto ventures.
Lummis negotiated ethical language and sent it to the White House, but the White House rejected it, calling it “unacceptable.” Lummis has committed to trying again.
Despite the challenges, the industry remains hopeful. Cody Carbone, CEO of The Digital Chamber, stated that “The door is still open” for market structure progress this year and to get the legislation to the President’s signature by early 2026.
