US Senate Banking Chairman Tim Scott, along with Subcommittee on Digital Assets Chair Cynthia Lummis, Senator Thom Tillis, and Senator Bill Hagerty, have released a set of principles guiding the development of comprehensive market structure legislation for digital assets. The principles aim to promote responsible innovation, protect consumers, and provide clarity for industry participants.
The key principles include:
Clear definitions of digital asset securities and commodities
Allocation of regulatory authority among regulators
Recognition of different risks and benefits between centralized firms, decentralized finance protocols, and non-custodial software platforms
Preservation of self-custody of digital assets
Exemptions for certain digital asset fundraising activities
Modernized regulations to foster innovation
Protection of customers who purchase or trade digital assets
Targeted measures against illicit finance and money laundering
Welcoming responsible innovation among federal financial regulators
These principles will serve as a baseline for negotiations on the bill, aiming to provide long-overdue clarity for digital asset regulation.
Source: https://www.banking.senate.gov/newsroom/majority/scott-lummis-tillis-hagerty-release-principles-for-market-structure-legislation