Binance Regulatory Update: U.S. Senate Advances Crypto Market Structure Framework**

Key Points:

1. Bipartisan Legislative Push: Senator Tim Scott (R-SC) and Cynthia Lummis (R-WY) have introduced a draft framework for crypto market regulation, building on the House-passed CLARITY Act. The proposal seeks to clarify SEC oversight, define "ancillary assets" (non-security tokens), and establish clear jurisdictional lines between the SEC and CFTC .

2. **Regulatory Adjustments**: The draft mandates the SEC to adapt rules based on crypto asset characteristics, particularly distinguishing securities from commodities. It aims to reduce enforcement ambiguity and foster innovation by providing exemptions for decentralized projects .

3. **Timeline**: Senators target a **legislative consensus by September 30**, aligning with House efforts to finalize stablecoin and market structure laws. This follows the Senate’s recent passage of the **GENIUS Act** (stablecoin framework) .

4. **Industry Impact**: The framework could streamline compliance for exchanges and token issuers, with provisions for provisional CFTC registration and safe harbors for DeFi protocols .

**Why It Matters**: The U.S. is moving closer to comprehensive crypto regulation, potentially reducing regulatory fragmentation and encouraging institutional participation. Binance and other platforms should monitor developments, as the CLARITY Act’s provisions (e.g., preemption of state laws, custody rules) may significantly affect operations .

*For further details, refer to [The Block](https://www.theblock.co) or congressional updates.*

**—Binance Policy Team**

*Note: This summary synthesizes bipartisan legislative efforts; final provisions may evolve during negotiations.*