Revised Crypto Bill Sets Rules for SEC-CFTC Cooperation

TLDR

• The Senate Banking Committee released an updated draft of the Crypto Market Structure Bill.
• The bill clearly exempts staking, airdrops, and DePIN from being classified as securities.
• It blocks the SEC from taking action against existing non-fraudulent tokens.
• The bill introduces legal protections for software developers building decentralized platforms.
• It incorporates the Blockchain Regulatory Certainty Act to support neutral tech development.

The Senate Banking Committee has published a revised version of the Crypto Market Structure Bill with key additions. The draft bill now clearly exempts staking, airdrops, and DePIN from securities classification. It also introduces protection for developers and mandates closer collaboration between regulators.

Crypto Bill Excludes Staking and Airdrops

The updated Crypto Market Structure Bill excludes staking, DePIN, and airdrops from securities regulations. This aligns with recent SEC guidance stating that such activities are not securities. The bill aims to give regulatory clarity to projects offering these features.

Section 101 of the Crypto Market Structure Bill now includes expanded language on ancillary assets. The bill confirms that these digital assets are not securities, provided they are not tied to fraud. It also blocks the SEC from pursuing legal action on existing tokens unless fraud is proven.

This move directly responds to industry feedback, including input from Ripple. The company warned about regulatory overreach modeled after past SEC leadership. Lawmakers are now working to ensure future SEC administrations cannot apply outdated interpretations.

Developer Protections Included After DOJ Policy Shift

The bill includes new measures that protect software developers building decentralized platforms. These provisions ensure DeFi creators aren’t held to the same standards as centralized firms. This builds on the framework proposed in the Blockchain Regulatory Certainty Act.

The bill follows the DOJ’s latest policy statement on developer prosecution. The department will no longer charge DeFi developers unless they intentionally promote illegal use. Congress is reinforcing that stance through explicit legal protections in the bill.

The Roman Storm case has raised industry concerns about developer liability. In response, the Crypto Market Structure Bill ensures protections for those who create neutral tools. Lawmakers are now emphasizing intent over technology in regulatory assessments.

SEC and CFTC to Coordinate Through Joint Advisory Committee

The draft Crypto Market Structure Bill also focuses on inter-agency coordination between the SEC and CFTC. Section 701 introduces a Joint Advisory Committee to streamline crypto regulation. This aims to avoid overlapping actions and ensure consistent oversight.

Section 702 sets procedures for resolving disputes between the two agencies. It ensures both bodies act collaboratively and transparently on enforcement. Lawmakers want efficient regulation without conflicting interpretations.

Both agencies already plan a joint roundtable on September 29. They will discuss regulatory harmonization for the crypto space. The Crypto Market Structure Bill supports that process and encourages lasting cooperation.

Senator Mark Warner noted that bipartisan backing is still needed. Without support, a September 30 markup deadline appears unlikely. The bill remains a central focus of crypto legislation in Congress.