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In a crucial movement that shape the future regulatory landscape of digital assets, the Senate bank committee unanimously issued a discussion concept describing extensive legislation on cryptocurrency market structure. This development follows the approval of the Clarity Act of the House and complements the recently signed Genius Act, aimed at the regulation of the Stablecoin. The new design is intended to clarify the distinction between digital raw materials and securities, to streamline SEC registration protocols and to determine consistent disclosure standards for banks using distributed ledger technology. It also tries to define “additional assets” that would be exempt from strict registration, better management of guardianship and trading location, and banks with guidelines to integrate blockchain systems all while strengthening anti-illegal financing wars.
Senators Tim Scott, Cynthia Lummis, Bill Hagerty and Bernie Moreno led the assignment effort. Scott and Lummis recently introduced a framework of seven points, underlining legal awards between raw materials and effects, jurisdiction boundaries, consumer protection and support for innovation. Senator Lummis, chairman of the Senate Digital Assets Subcommissie, emphasized the intention of the Senate to use the Clarity Act of the House as a legislative foundation.
Chairman Scott has announced a goal of 30 September to complete the legislation, including Markup, approval and floor promotion committee. This timeline has received support from important stakeholders in the digital assets industry, including various crypto companies and regulatory advisers. Huis Majority Whip Tom Emmer expressed confidence in the ability of the Senate to pass on a coordinated version later this year, despite the pressure of the upcoming budget debates. These efforts build on the passage of three crypto-related accounts last week, including the Genius Act, which is required for all Stablecoin emission, regular audits and anti-money laundering practice.
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In the meantime, markets responded quickly to the legal shift. Shares of Circle Internet Group (NYSE: CRCL), emitting from the USDC Stablecoin, fell more than 8% after a downgrade of investment firm Compass Point. Analyst Ed Engel mentioned sustainability problems and increased competition and noticed on the profit sharing agreement of Circle with Coinbase as a potential more limited for future growth. He reduced his price target from $ 205 to $ 130, warning that Circle could lose the market share because rival Stablecoins will get a grip.
Ark Invest, led by Cathie Wood, reportedly also left a large position in the circle and sold more than $ 110 million in stock earlier this summer. The relocation marked a reversal of Ark’s Bullish attitude during the IPO of Circle in June, when the company briefly traded in the vicinity of $ 299 per share. The share has since fallen, which has fallen in the low $ 180s at the beginning of July, as a result of which questions are asked about investors hunger for crypto accommodations.
Despite the volatility in individual crypto-linked shares, broader digital asset markets remain strong. Bitcoin acts almost $ 119,700 and Ethereum recently hit a peak of 2025 at $ 3,798. Mining companies and spot Bitcoin ETFs have benefited from renewed investor optimism around the clarity of the regulations. Companies such as Oproerplatforms and BitFarms have seen upward movement, which is a reflection of bullish sentiment linked to the upcoming legislative security.
Equity markets remained cautious, with Wall Street Futures sliding by investors’ jitters prior to a large series of profit reports in the second quarter. While the Nasdaq experienced small falls as a result of taking a profit in the technical sector, the S&P 500 remained in the direction of record highs. The strength of the company and resilient macro -economic indicators have supported confidence in many sectors. The stronger than expected income of Coca-Cola, reported before the Q2 income release, also helped in strengthening market sentiment.
The Genius Act, signed by President Trump on July 18, stated a new benchmark for the supervision of Stablecoin in the United States. The law requires that all stablecoins are fully supported by cash or equal swallows, subject to monthly independent audits and comply with strict AML rules. It marks one of the three accounts taken by the house during what legislators called ‘Crypto Week’. In addition to the Genius Act and the Clarity Act on Market Structure, a third bill also knew a digital currency from the Central Bank the Chamber.
The new proposal from the Senate structure is expanding to the foundation of the house. By defining digital assets categories, limiting sec -award and making a route map for blockchain integration in bank infrastructure, the draft legislation is the goal of bringing a permanent legal clarity. Stakeholders from the industry, including digital anchorage and various fintech lobby groups, have praised the proposal for offering legal security and at the same time retaining the space for innovation.
The path ahead now depends on the assets of the Senate bank committee to maintain its deadline in September. If successful, the market structure account will go to the senate floor and then return to the house for reconciliation. With dual support and strong industrial support, many see a realistic path to the final determination towards the end of 2025.
While the legislation on digital assets is given a clearer form, investors repeat their approach to crypto shares and blockchain-linked shares. The double forces of policy stability and market revision will probably remain the central themes for both supervisors and financial markets in the coming weeks.
Source: Investors.com – July 22, 2025
