State of Crypto: The Senate Responds to Clarity Act
The Senate Banking Committee released a discussion draft of the Responsible Financial Innovation Act of 2025, seeking public input by early August. This draft aims to clarify the Securities and Exchange Commission’s (SEC) oversight of digital assets, introducing the term “ancillary asset” to define a category of assets under SEC jurisdiction. This action is part of a broader legislative push to harmonize with the House’s Clarity Act, which already passed.
The bill focuses on the SEC’s role, differing slightly from the House’s approach. Industry experts note the draft omits explicit definitions of “digital commodity” and its trading, areas typically falling under the Agriculture Committee’s purview. This suggests a collaborative effort between the Banking and Agriculture Committees is anticipated to finalize market structure legislation. The Senate’s legislative process, however, may differ from the House’s, requiring a 60-vote threshold for Senate passage and necessitating bipartisan support.
Meanwhile, the ongoing Roman Storm trial continues, with the prosecution resting its case. The defense raises the possibility of a mistrial due to allegedly misleading witness testimony. Prosecutors also hinted at potential charges against Dragonfly Capital executives for past investments in Tornado Cash. Regulatory actions also include the SEC approving, then pausing, Bitwise’s application for a crypto ETF, mirroring a similar situation with Grayscale.
Other notable events include Polymarket’s potential stablecoin launch or revenue-sharing agreement with Circle, its return to the US market following a dropped federal investigation, and the FBI dropping its investigation into Kraken founder Jesse Powell. A Denver couple faces charges for an alleged multi-million dollar cryptocurrency scam, and an appeals court overturned Yuga Labs’ $9 million win against Ryder Ripps, requiring further proof of trademark infringement.
Finally, the Senate Agriculture Committee rescheduled its meeting on Brian Quintenz’s CFTC chair nomination to July 28th. Crypto companies spent nearly $7 million on lobbying in Q2 2025, with Coinbase spending close to $1 million on digital asset issues and SEC budget matters. President Trump’s visit to the Federal Reserve impacted renovation costs, and Galaxy Digital published an analysis of Trump’s crypto-related policy changes during the first six months of his presidency.
