Senate Updates Crypto Market Structure Bill with New Protections and Oversight

Highlights:

• Crypto Market Structure Bill excludes staking, airdrops, and DePIN from securities classification rules.
• Bill protects DeFi developers from centralized legal standards and enforcement actions.
• SEC and CFTC to jointly oversee crypto under new advisory committee framework.

The U.S. Senate Banking Committee has released a new version of the Crypto Market Structure Bill, aiming to bring clear rules for the crypto industry. The updated draft adds fresh points to make sure some crypto activities are not counted as securities. In this version, decentralized physical infrastructure networks (DePIN), staking, and airdrops are all kept outside securities laws. This step also matches the Securities and Exchange Commission’s stance that staking activities should not be treated as securities.

New Protections Added in Updated Draft Bill

In addition, the Committee has expanded Section 101, which deals with ancillary assets. This section confirms that assets not falling under securities remain outside the reach of securities laws. It also makes clear that staking and airdrops are not securities and blocks the SEC from filing enforcement actions or lawsuits against existing tokens, provided they are not involved in fraud.

🚨NEW: The Senate Banking Committee’s latest market structure draft reflects stakeholder and lobbyist feedback.

Here are some standouts from the text:

1. Ancillary Assets (Section 101): This section aims to provide more legal clarity, exclude assets that are clearly… pic.twitter.com/ubK0f1UEF8

— Eleanor Terrett (@EleanorTerrett) September 5, 2025

The revised draft also includes new protections for software developers creating decentralized platforms. These provisions ensure that DeFi builders are not judged under the same standards as centralized firms. This approach builds on the framework earlier outlined in the Blockchain Regulatory Certainty Act. The bill also aligns with the Department of Justice’s recent policy statement, which said DeFi developers would not face prosecution unless they knowingly promoted illegal activity. By writing these protections into law, Congress is reinforcing the DOJ’s stance and offering more legal clarity for innovators in the space.

These adjustments directly address Ripple’s earlier concerns about the draft bill. Ripple had stressed the need for strong provisions to prevent future SEC administrations from taking the same strict approach used by Gary Gensler. By incorporating these rules, Congress aims to limit regulatory overreach and provide greater certainty for the cryptocurrency market moving forward.

SEC and CFTC Set for Joint Oversight Under New Draft Bill

The draft Crypto Market Structure Bill also places strong attention on coordination between the SEC and CFTC. Under Section 701, the bill proposes the creation of a Joint Advisory Committee to simplify regulatory processes for digital assets. The goal is to prevent overlapping actions and bring more consistent oversight across the two agencies. Section 702 outlines clear steps for settling disagreements between the SEC and CFTC. It emphasizes collaboration and transparency in enforcement so that both regulators move in the same direction without confusion. 

Lawmakers are pushing for effective regulation that avoids conflicting views or duplicate efforts. The two agencies are already preparing for a joint roundtable on September 29, where they will address ways to harmonize crypto regulations. The new provisions in the Crypto Market Structure Bill support this initiative and aim to build long-term cooperation between the regulators.

🚨JUST IN: The @SECGov and @CFTC are ramping up coordination to support crypto, DeFi, prediction markets, perpetual contracts & portfolio margining.

The two agencies are aiming to harmonize rules, reduce regulatory gaps, expand trading hours, and use innovation exemptions to… pic.twitter.com/T8utxyhbKe

— Eleanor Terrett (@EleanorTerrett) September 5, 2025