Sen. Tim Scott Leads Bipartisan Push for US Crypto Regulation Amid Warren Opposition

Senator Tim Scott is leading efforts to pass a comprehensive cryptocurrency market structure bill by the September 30 deadline, aiming to establish clearer regulatory oversight and foster innovation in the digital asset space. Scott anticipates support from 12 to 18 Democratic senators but identifies Senator Elizabeth Warren as a significant obstacle, accusing her of blocking bipartisan progress due to her concerns that the bill favors the crypto industry at the expense of consumer protections. Warren criticizes the legislation as an "industry handout" that weakens regulatory compliance compared to traditional financial institutions, emphasizing the need for stronger consumer safeguards. The bill seeks to clarify the division of regulatory responsibilities between the SEC and CFTC and exempt certain cryptocurrencies from securities registration to reduce burdens on decentralized projects. While the House has passed a similar crypto market structure bill, the Senate version must still be reconciled, with Scott framing the legislation as a crucial step to prevent innovation from moving overseas and to fulfill President Trump's goal of making the U.S. a global hub for digital finance. The ongoing debate highlights a broader partisan divide over how to regulate the rapidly evolving cryptocurrency industry.