Corporate Counsel Daily, Republican Senators release principles for development of comprehensive market structure legislation, (Jun 25, 2025)

By Joe Cox, J.D.

The four Senators unveiled a list including six principles to foster a framework for future legislation.

Senate Banking Chairman Tim Scott (R-S.C.), Subcommittee on Digital Assets Chair Cynthia Lummis (R-Wy.), Sen. Thom Tillis (R-N.C.), and Sen\. Bill Hagerty (R-Tenn.) jointly announced the release of a set of principles for the development of comprehensive market structure legislation. The set of six principles are intended to provide a guide on future legislation. All four Senators mentioned the need for digital asset legislation in their remarks. Senator Lummis particularly chastised the current regulatory atmosphere, charging, “While the European Union and Singapore have established clear regulations, the U.S. continues to sit on the sidelines while the digital asset industry seeks greener pastures.”

The released principles. The Senators’ announcement itemized the set of six core principles. Specifically, those are:

1. Legislation Should Clearly Define the Legal Status of Digital Assets

2. Jurisdiction Should Be Clearly Allocated Among Regulators

3. Regulation Should be Modernized to Foster Innovation

4. Regulation Should Protect Those Who Purchase or Trade Digital Assets

5. Illicit Finance Measures Should Be Targeted and Pro-Innovation

6. Federal Financial Regulators Should Welcome Responsible Innovation

Throughout the list, Republican priorities of minimizing and streamlining regulations and favoring economic innovation are notable. Among other notable points of emphasis are the clear demarcation between digital asset securities and commodities, an SEC exemption for digital asset fundraising, and considering tokenization as an evolution of the infrastructure rather than a fundamental change in the nature of the underlying asset.

Statements regarding the Principles. Senator Hagerty hailed the shift in priorities as “working towards a reasonable, light-touch market structure framework.” Senator Tillis noted, “These principles strike the right balance by protecting consumers, promoting innovation, and clearly defining the roles of regulators in a rapidly evolving market.” Senator Scott further praised the released principles, stating. “These principles will serve as an important baseline for negotiations on this bill, and I’m hopeful my colleagues will put politics aside and provide long-overdue clarity for digital asset regulation.”

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