Senate Crypto Bill Takes a Pro-Innovation Stand, Offering an Alternative to the EU's MiCA

The Clarity Act is Probably Dead: Here's What's Next for Its [ 1 ] The United States Senate has progressed a significant bill designed to overhaul the structure of cryptocurrency markets

regulations, coming after the House approved the Digital Asset Market Clarity Act (the Clarity Act) in July 2025. The Senate’s legislation, expected to serve as the main regulatory framework, aims to clearly define regulatory responsibilities over digital assets and elevate the Commodity Futures Trading Commission (CFTC) as a principal authority. Still in the drafting stage, this bill must overcome several major challenges, such as bipartisan negotiations, committee endorsements, and securing at least 60 votes on the Senate floor.

Crypto Regulation in the U.S.: Summer 2025 Legislative … [ 2 ] The House passed the Clarity Act with a bipartisan 308–122 vote, setting out digital asset definitions and delegating oversight to both the Securities and Exchange Commission (SEC) and the CFTC. However, Senate leadership, including crypto-friendly Republicans like Cynthia Lummis, have stressed the necessity for a Senate-specific version that can attract Democratic backing. A 182-page working draft from Senate Republicans, not yet formally introduced, includes provisions for issuers to self-certify assets as non-securities and updates custody regulations for crypto-related technologies.

The Global Crypto Regulation Race in 2025: U.S. Clarity vs. [ 3 ] The Senate bill’s journey to becoming law involves approval from both the Agriculture and Banking Committees, followed by a vote from the full Senate. Should it pass, the House will then review the Senate’s revised version, with President Trump anticipated to sign it. Nevertheless, progress could be delayed by ongoing budget negotiations surrounding a possible government shutdown and the Senate’s limited bandwidth for multiple legislative initiatives. Senator Kirsten Gillibrand, a central bipartisan negotiator, pointed out that budgetary discussions are expected to dominate Congressional attention in the short term.

The 2025 crypto policy landscape: Looming EU and US … [ 4 ] The Senate’s proposed bill aligns with the Trump administration’s digital asset policy report from July 2025, which highlighted the need for structural clarity, federal cooperation, and opposition to a retail central bank digital currency (CBDC). This report supports the Senate’s approach of minimizing overlapping regulations and safeguarding privacy, consistent with the objectives of the Clarity Act. Nonetheless, rolling out the law will be complicated. Once enacted, federal agencies like the SEC, CFTC, and FinCEN will spend years developing new rules, with the SEC estimating a typical rulemaking timeline of one to two years.

Observers have pointed out the lengthy timeframes for implementing such regulations, drawing comparisons to the Dodd-Frank Act of 2010, where some core rules are still pending after more than a decade. The Senate’s regulatory changes may not be fully enforced until 2026 or beyond, with companies likely facing a one- to two-year period to comply. This lag could result in ongoing uncertainty for crypto businesses, especially since the EU’s Markets in Crypto-Assets (MiCA) rulebook, effective throughout 27 EU nations from late 2024, already provides a harmonized regulatory landscape for digital assets.

The Senate’s activities are part of broader economic and geopolitical strategies. By promoting a crypto-friendly approach, the U.S. is positioning itself to compete against the EU’s regulatory measures and retain a leadership role in global digital finance. The focus in the Senate bill on self-certification and reduced government intervention contrasts with MiCA’s rigorous, detailed requirements. Still, the U.S. approach faces difficulties in aligning with international norms, particularly as the EU’s stablecoin rules—requiring full reserve backing and transparency—intersect with the Senate proposal.

Despite these initiatives, several key issues are unresolved, such as the SEC’s role in updating securities laws and the CFTC’s responsibility for derivatives oversight. The Senate’s market structure focus leaves questions about tax policy and broader financial stability open, and lawmakers admit further adjustments will be necessary. As the Senate works through these complexities, industry participants are waiting to see how the final law will strike a balance between promoting innovation, protecting investors, and ensuring regulatory effectiveness as the crypto sector continues to evolve rapidly.