Senate Introduces RFIA for U.S. Crypto Regulation

On July 22, the Senate Banking Committee released the Responsible Financial Innovation Act (RFIA), a discussion draft aimed at establishing a clear crypto regulation framework. The RFIA builds on the bipartisan CLARITY Act by defining digital assets, exempting ancillary tokens with annual sales under $75 million, and proposing to shift oversight of digital assets from the SEC to the CFTC. It also instructs the SEC to tailor or waive existing rules for digital asset issuers and opens a public comment period through August 5, pending a full committee vote. In parallel, a House subcommittee has proposed a 7% budget cut for the SEC amid debates over tokenization. While SEC Chair Paul Atkins praised tokenization, voices like Commissioner Hester Peirce and Citadel Securities warn that tokenized securities remain bound by federal law. Industry players are accelerating innovation: JPMorgan explores BTC and ETH-backed lending; Western Union and WisdomTree plan stablecoin launches; and Polymarket designs a U.S. reentry via stablecoin partnerships. Further developments include U.S. Marshals Service scrutiny over discrepancies in seized versus forfeited BTC, highlighting the need for tighter safeguards. Confidential IPO filings by Bullish Global and custodian BitGo underscore strong investor appetite. Overall, this wave of regulations and market innovations marks a pivotal moment in U.S. crypto regulation, promising greater clarity and potentially bolstering market confidence.