U.S. senators have introduced a draft bill aimed at establishing a comprehensive regulatory framework for the cryptocurrency industry. If passed, the legislation would provide much-needed legal clarity by defining whether digital tokens are classified as securities or commodities. Crucially, the bill would grant the Commodity Futures Trading Commission (CFTC) authority to oversee spot markets, a shift long favored by crypto firms over the more stringent oversight of the Securities and Exchange Commission (SEC).
A significant portion of the bill addresses the stablecoin market and a contentious “loophole” regarding interest payments. To address concerns from the banking lobby about a potential drain on traditional deposits, the draft prohibits crypto firms from paying interest to users simply for holding stablecoins. However, it preserves competition by allowing companies to offer rewards or incentives for specific actions, such as using tokens for payments or loyalty programs, provided these are accompanied by clear regulatory disclosures.
The legislative process is moving forward as the Senate Banking and Agriculture committees prepare for upcoming debates and amendments. While industry groups like the Digital Chamber are encouraged by the momentum, some tensions remain. Representatives of the Blockchain Association have criticized “Big Bank” influence, arguing that efforts to restrict stablecoin rewards are anti-competitive measures designed to protect traditional financial institutions from innovative digital products.
Despite the current push, the bill’s path to becoming law remains uncertain. Although President Trump has positioned himself as a “crypto president” and the industry invested heavily in the 2024 elections, the political window is narrowing. With lawmakers already shifting their focus toward the 2026 midterms, some lobbyists fear the window for a landmark market structure bill may close, potentially leaving the sector to rely on temporary regulatory guidance that could be reversed by future administrations.
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