Senators release bill to reshape U.S. crypto regulation

U.S. crypto regulation could soon become clearer as U.S. senators late Monday released draft legislation to establish national rules for cryptocurrency markets. The bill seeks to clarify which federal agencies oversee different parts of the fast-growing digital asset sector.

Supporters say the proposal would reduce uncertainty that has shaped crypto businesses for years. Clear rules could also make it easier for firms and investors to operate in the United States.

The crypto industry has pressed Congress to act, arguing the lack of defined oversight threatens its future. Companies say conflicting enforcement actions have slowed growth and pushed activity overseas.

A central part of the bill explains when a digital token counts as a security, a commodity, or another asset type. That distinction determines which laws apply and which regulator has authority.

Under the proposal, the U.S. Commodity Futures Trading Commission would gain power over spot crypto markets. The industry has favored the agency over the U.S. Securities and Exchange Commission, which has taken a tougher enforcement approach.

The banking sector is also pushing for changes to a 2025 law that created federal oversight for stablecoins. Stablecoins are crypto tokens designed to track the value of the U.S. dollar.

Banks want to close a provision that allows some intermediaries to pay interest on stablecoins. They warn this could pull deposits out of insured banks and strain local lenders.

In a letter to Congress on Monday, the American Bankers Association and other groups said large deposit shifts could weaken communities nationwide. Crypto firms dispute that claim and say limits on interest payments would stifle competition.

Former President Donald Trump has publicly embraced the industry and promised supportive policies. Trump's crypto ventures have also drawn attention to the sector.

Crypto groups spent heavily in the 2024 elections to back friendly candidates. The House of Representatives passed its version of the bill last July, but Senate talks stalled over anti-money-laundering rules and decentralized finance platforms, known as DeFi.

DeFi platforms let users trade tokens directly without a central operator. With Congress now focused on the 2026 midterm elections, some lobbyists doubt the bill will reach the president’s desk, leaving firms reliant on shifting guidance as debates over U.S. crypto regulation continue.