Four Republican senators introduced the Responsible Financial Innovation Act of 2025, a draft bill establishing comprehensive cryptocurrency regulations. Led by Banking Committee Chairman Tim Scott and supported by Senator Cynthia Lummis, the legislation aims to clarify Bitcoin's status under U.S. law by separating digital commodities from securities. Tokens without equity-like rights may qualify as commodities if meeting decentralization and transparency standards, with Bitcoin explicitly highlighted as a beneficiary.
The bill mandates disclosures for token issuers raising over $5 million, requiring public reports on business structure, token utility, and leadership backgrounds. It restricts insider selling until networks achieve full decentralization and establishes a regulatory sandbox for early-stage projects to test innovations with reduced oversight. Crucially, it protects self-custody rights, affirming users' direct control over assets like Bitcoin.
Enhanced anti-crime measures include real-time collaboration between crypto platforms and federal agencies, plus new Treasury compliance standards for financial institutions handling digital assets. The legislation directs the SEC to update asset classification guidelines and aligns with President Trump's push for U.S. crypto leadership, building on earlier House-passed bills like the CLARITY Act that shifts commodity oversight to the CFTC.