\t\t\t\t\t\t\t\tKey Takeaway<\/p>\n
Senate Republicans are split over a major Digital Asset Market Structure Bill, as Senator John Kennedy warns the committee is not yet prepared to advance it.<\/p>\n
With Donald Trump back in the White House, optimism around the U.S. emerging as a global crypto hub has been on the rise.<\/p>\n
Yet, that momentum is hitting hurdles in Congress, as Senate Republicans find themselves divided over a Digital Asset Market Structure Bill.<\/p>\n
Senator Kennedy urges a word of caution<\/p>\n
On the 10th of September, Sen. John Kennedy, a senior member of the Banking Committee, cautioned<\/a> that the panel isn\u2019t ready to advance the bill. <\/p>\n He cast doubt on Chairman Tim Scott\u2019s timeline to push the bill forward by the end of September.<\/p>\n When asked about advancing the bill this month, Sen. Kennedy responded,\u00a0<\/p>\n \u201cI don\u2019t think we\u2019re ready. People that I talk to still have a lot of questions. I know I still have a lot of questions.\u201d<\/p>\n He has raised concerns that the proposed Digital Asset Market Structure Bill, designed to split digital asset oversight between the SEC and CFTC, might hand excessive influence to the crypto industry.<\/p>\n However, his stance contrasts sharply with Chairman Tim Scott and other Republicans, who argue that establishing a clear, bipartisan framework is long overdue and remains a top priority.<\/p>\n Chairman Tim Scott\u2019s retort<\/p>\n Commenting on the issue, Senator Tim Scott\u2019s spokesperson, Jeff Naft, emphasized that this debate is far from new.<\/p>\n He pointed out that the original Responsible Financial Innovation Act, introduced by Senators Cynthia Lummis and Kirsten Gillibrand in 2022, has been under active review since June.<\/p>\n Lawmakers have received thousands of pages of feedback and engaged with around 160 stakeholders in preparation for a potential September markup.<\/p>\n Naft stated,<\/p>\n \u201cThe House has already acted, and the Senate should not fall behind.\u201d<\/p>\n Despite growing momentum, the push for comprehensive crypto legislation on Capitol Hill is becoming increasingly fragmented.<\/p>\n What\u2019s more\u2026<\/p>\n After the House passed the CLARITY Act in July, Senate Republicans introduced the GENIUS Act over the summer to regulate stablecoins pegged to the U.S. dollar.<\/p>\n Meanwhile, Senate Banking Committee Chairman Tim Scott has spent months rallying support for a broader digital asset bill. <\/p>\n He worked with Republican colleagues Cynthia Lummis, Thom Tillis, and Bill Hagerty to release a set of guiding principles aimed at shaping the legislation.<\/p>\n These principles advocate for a dual regulatory framework, assigning oversight responsibilities to both the SEC and CFTC. <\/p>\n They also call for clearer asset classifications to distinguish between securities and commodities, and emphasize robust anti-money laundering rules designed to balance innovation with investor protection.<\/p>\n However, Sen. Kennedy dismissed these efforts as merely a \u201cbaby step\u201d compared to the sweeping Digital Asset Market Structure Bill currently under debate.<\/p>\n Crypto industry\u2019s response<\/p>\n Crypto industry leaders, including Coinbase\u2019s Brian Armstrong, have strongly backed Scott\u2019s September-end deadline, pouring millions into lobbying efforts for regulatory clarity. <\/p>\n Divisions have surfaced both within the Republican Party (GOP) and among Democrats, as Senator Andy Kim cautioned against rushing the legislative process.<\/p>\n Meanwhile, on the 9th of September, a group of 12 Senate Democrats unveiled their own competing framework.<\/p>\n They called for stricter disclosure requirements, mandatory platform registration, and restrictions to prevent lawmakers and their families from personally profiting from digital assets.<\/p>\n What\u2019s ahead?<\/p>\n Amid these competing proposals, regulators are also stepping in.<\/p>\n