US Senate Finally Unveils Draft Bill to Fully Regulate #Bitcoin and the Crypto Industry. Further, in the second section, the bill addresses the growing concern around crypto-related crime. It directs the Treasury to develop standards for financial institutions working with digital assets and encourages law enforcement and regulators to share information with private crypto companies.
However, the third section sets clearer expectations for banks and investment firms. Notably, it mentions how banks can work with digital assets legally and calls for consistent rules when institutions include crypto in investment portfolios. It also updates how firms should calculate capital when crypto transactions are offset between parties.
The final part of the bill addresses the future. Interestingly, lawmakers proposed a sandbox that lets innovators test blockchain projects with lighter oversight.
The bill also guarantees the right to self-custody, allowing individuals to hold and manage their crypto without going through a third party. In addition, it updates the SEC’s responsibilities to include support for innovation and urges regulators to align U.S. rules with global standards. Senator Tim Scott, who chairs the Senate Banking Committee, said lawmakers in both chambers share a common goal of creating fair rules that protect investors while allowing innovation to thrive in the U.S. He stressed the importance of keeping digital finance rooted in American soil. This bill follows a series of moves the federal government has made since President Donald Trump returned to office in January 2025.
Just days after taking office, he signed an executive order that created a task force focused on reforming crypto regulations. Also, another order rolled back earlier policies from the Biden administration. Congress also took major action this month during what many in Washington now call “Crypto Week.” For context, lawmakers passed three major bills aimed at creating a national framework for digital assets. One of them, the GENIUS Act, sets strict rules for stablecoins.
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