The new 2025 Crypto Bill, titled the *Responsible Financial Innovation Act of 2025*, has been introduced by Senator Cynthia Lummis and other members of the US Congress. It marks a significant step towards cryptocurrency regulation, providing clarity for market participants.
Defining SEC and CFTC Jurisdictions
The 2025 bill clearly delineates the roles of the SEC and CFTC. The establishment of a Joint Advisory Committee on Digital Assets with representatives from both regulators ensures transparency and coordination in the regulatory sphere. A public roundtable is scheduled for September 29 to discuss these issues.
Protections for DeFi Developers
The bill proposes 'safe harbors' for creators of genuinely decentralized protocols. Developers, validators, and wallet creators will be exempt from financial regulation as long as no centralized entity controls the protocol. A coalition of 112 crypto organizations has backed this bill, asserting that protecting developers is crucial for sustaining innovation in the blockchain space.
New Rules for Tokenized Assets
The bill also addresses the tokenization of physical assets, asserting that transforming physical assets into digital tokens does not classify them as securities. Regulators are expected to study verification and custody mechanisms for tokenized assets to protect institutional investors.
The revised 2025 Crypto Bill emphasizes legal clarity and innovation within the industry. Additionally, it serves as a foundation for effective regulatory solutions and strengthens the United States' position in the blockchain sector.
