Sen. Lummis Seeks Senate Markup Next Week on Market-Structure Bill, Potential CFTC Shift
Sen. Cynthia Lummis (R‑WY) said at the Blockchain Association policy summit she expects the Senate Banking Committee to hold a markup next week of the Responsible Financial Innovation Act, the long‑delayed market‑structure bill. Lummis and Sen. Kirsten Gillibrand have repeatedly revised a bipartisan draft and plan to circulate a new version to lawmakers and industry this week; staff are reportedly exhausted from the rewrites. The bill could shift significant oversight of digital assets toward the Commodity Futures Trading Commission (CFTC) while leaving the Securities and Exchange Commission (SEC) authority over fundraising and token issuance — a major regulatory change that remains unresolved. Progress has been slowed by a recent government shutdown, disputes over DeFi provisions, differing token/asset definitions (including the Senate’s “ancillary assets” language), and outstanding quorum and White House ethics language. Lawmakers have warned that delays or a poor compromise could derail passage ahead of the election cycle; Lummis has previously said the bill might become law by 2026 if negotiations conclude. Traders should monitor draft language on asset classification, CFTC vs. SEC jurisdiction, and DeFi rules: clear wording will affect derivatives, custody, exchange compliance and on‑chain trading activity, and could materially shift market structure and liquidity in related markets.
Neutral
The immediate market impact is likely neutral. The announcement that a Senate Banking Committee markup is expected next week reduces short‑term legislative uncertainty, which can be constructive for market sentiment. However, major policy details remain unresolved — notably asset classification, CFTC vs. SEC jurisdiction, and DeFi provisions — so the news does not yet provide a clear legal framework that would drive sustained bullish or bearish price moves. In the short term, traders may see modest volatility around draft releases or committee votes as markets price in changes to derivatives and custody rules. In the medium to long term, passage that clearly expands CFTC jurisdiction and sets firm DeFi rules could be bullish for derivatives and certain venue liquidity (potentially benefiting assets with established futures/derivatives markets), while harsh SEC‑style constraints or restrictive DeFi rules could be bearish for on‑chain trading volumes and tokens reliant on DeFi primitives. Because outcomes remain uncertain and hinge on final legislative language and timing, classify the immediate effect as neutral until specific provisions are finalized.