Over 112 crypto companies urged the U.S. Senate to protect developers in the upcoming market structure bill, seeking regulatory clarity on decentralized assets.
The bill’s implications are crucial for regulatory certainty, potentially increasing institutional capital flows as developers gain protection and clarity on decentralized protocols.
Over 112 crypto companies are pressing the U.S. Senate to create legislation safeguarding developers and provide market structure clarity. The call is a response to the Senate Banking Committee’s crypto market structure bill draft, aiming for regulatory certainty.
The Senate draft is primarily driven by Sen. Sherrod Brown and Sen. Cynthia Lummis. It focuses on regulatory gaps between the SEC and CFTC, proposing clear definitions, including ancillary assets, to improve legal clarity. This initiative reflects industry demand for a detailed legislative framework.
Ancillary Assets Classification May Boost Market Confidence
The bill aims to clarify the classification of ancillary assets, reducing legal ambiguity. The proposed legislation could foster capital flows as institutional confidence grows under decreased regulatory uncertainty. Key tokens like ETH and UNI stand to benefit, gaining relaxed compliance requirements.
Historical precedents suggest regulatory clarity leads to increased adoption of compliant platforms. While direct outcomes depend on final legislation, decreased uncertainty could enhance the industry’s regulatory landscape. Market participants anticipate potential growth in TVL on U.S.-compliant exchanges.
Sen. Cynthia Lummis stated, “We are incorporating their content and ideas into our draft. You will see a very comprehensive working draft from the Senate Banking Committee very early in September and then we’ll begin working on a bipartisan basis to hone through the bill and then mark it up before the end of September in the banking committee.”
Past Acts and CLARITY Act Influence Current Debate
The House’s previous CLARITY Act set oversight boundaries between the SEC and CFTC, influencing industry perception. Similarly, past infrastructure acts impacted token activity in the U.S., causing governance migrations when regulatory guidance was unclear.
Expert analysis indicates that projects like ETH could gain from designated non-security status if decentralized governance is recognized outside regulatory scope. Historically, such clarity fosters integration across institutional markets, increasing adoption and innovation within compliant frameworks.
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