In a recent address, pro-crypto Senator Cynthia Lummis revealed her efforts to expedite the passage of a crucial piece of legislation known as the Market Structure Bill.
This initiative follows the recent enactment of several significant laws, including the GENIUS Act, the CLARITY Act, and the Anti-CBDC bills, all aimed at shaping the future of digital assets in the United States.
This piece of crypto legislation seeks to provide much-needed regulatory clarity, promote innovation, and address the significant risks often associated with the evolving digital asset landscape.
In contrast, the Senate bill grants the Securities and Exchange Commission (SEC) primary regulatory oversight over what it terms “ancillary assets.”
Notably, the bill specifies that these ancillary assets should not be classified as securities, and transactions involving them would not fall under federal securities laws, including the Securities Investor Protection Act of 1970.
The draft unveils that one of the most pressing challenges in developing a robust digital asset market is determining how traditional banks and financial institutions fit into this evolving ecosystem.
The proposed legislation aims to address this issue by explicitly allowing banks and financial holding companies to engage in a variety of digital asset activities, including custody and trading.
Featured image from DALL-E, chart from TradingView.com
