U.S. Senator Cynthia Lummis has announced plans to introduce a new cryptocurrency bill in 2026 aimed at resolving one of the biggest regulatory challenges facing the digital asset industry: determining which crypto assets should be treated as securities and which should fall under commodities regulation.
The proposed legislation, known as the Responsible Financial Innovation Act of 2026, seeks to establish a clearer legal framework for digital assets by assigning regulatory oversight based on how tokens are structured and used. The bill is designed to reduce confusion for crypto firms, investors, and regulators by drawing firmer boundaries between the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Under the proposal, crypto assets that function primarily as investment contracts would remain under SEC supervision, while decentralized digital assets that operate more like commodities would be overseen by the CFTC. This distinction has long been a source of uncertainty in the U.S., with overlapping enforcement actions and inconsistent guidance slowing industry growth.
Senator Lummis, who represents Wyoming and has been a vocal supporter of Bitcoin and blockchain innovation, said the goal of the bill is to allow legitimate crypto projects to operate with legal certainty while maintaining strong safeguards for investors. She has argued that regulatory ambiguity has pushed innovation offshore and placed unnecessary pressure on compliant firms.
The bill builds on earlier legislative efforts but places renewed emphasis on defining digital asset categories in a way that reflects how blockchain networks actually function. Industry participants have repeatedly called for this clarity, noting that uncertainty around classification has discouraged institutional adoption and long-term investment.
If introduced and passed, the Responsible Financial Innovation Act of 2026 would still require approval from both chambers of Congress and the President before becoming law. However, analysts say the proposal signals growing momentum in Washington to move away from enforcement-led regulation toward a more structured and predictable crypto policy framework.
As global markets increasingly compete to attract blockchain innovation, the outcome of the 2026 bill could play a significant role in shaping the future of digital asset development in the United States.
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