Regulatory watershed! U.S. Senate proposal: Exempt "ancillary assets" from securities laws, traditional institutions allowed to get on board encryption trading.

On July 22, Republican senators in the United States unveiled a discussion draft of the "2025 Responsible Financial Innovation Act," which includes the following core content: the creation of a new category of "Ancillary Assets" (referring to most functional tokens), exempting them from securities law registration requirements, but mandating semi-annual information disclosure; allowing traditional banks and other financial institutions to hold and trade Crypto Assets, engage in Crypto mortgage lending, and operate Nodes. The bill aims to clarify the regulatory boundaries between the SEC and CFTC, responding to the House's "Clarity Act," with the goal of passing in September. However, policy experts warn that the legislative timeline is tight and it may be postponed until 2026.

▍Core of the Bill: Define "Auxiliary Assets" to Build Differentiated Regulation The draft proposes a revolutionary classification framework for Crypto Assets:

• Definition of "Auxiliary Assets": Refers to "intangible, commercially viable alternative assets" that are sold as part of an investment contract, but do not confer equity/dividends/liquidation rights (covering most utility Tokens).
• Non-Security Properties: Clearly stating that such assets are not bound by securities laws, directly addressing the Democratic concerns of the "securities law loophole theory."
• Mandatory Information Disclosure: Issuers are required to disclose every six months:
  • Main Information: Team background, historical issuance records, business plan, financial status, insider trading
  • Asset Information: Supply, Pricing Mechanism, Distribution Plan, Function Description, Source Code (Partial)
• Exemption Clause: Annual financing amount < $5 million or daily average trading volume < $5 million can be exempt from disclosure; decentralized projects can self-certify identity to terminate obligations (but the SEC has the right to question).

▍Regulatory Responsibilities: The Banking Committee mainly targets the SEC, while the Agriculture Committee divides responsibilities with the CFTC The bill clearly defines the division of responsibilities within the Senate:

• Banking Committee (This Bill): Jurisdiction over crypto assets that fall under the SEC regulatory scope (mainly defining securities attributes).
• Agricultural Commission (Pending Proposal): A supporting bill will be introduced to clarify the CFTC's regulatory details on commodity-type Crypto Assets.
• Target Coordination: It forms a tug-of-war between the House and Senate with last week's passing of the "Clarity Act" (establishing the CFTC as the main regulatory body), but the Republican Party emphasizes the need for local innovation to retain talent to avoid regulatory ambiguity driving businesses away.

▍Traditional Institutions Enter: Banks Approved to Fully Participate in the Crypto Ecosystem The bill clears key obstacles for traditional financial giants:

• Licensed Institution Authority: Allows banks and other institutions to directly hold and trade crypto assets.
• Innovative Business License: Open core businesses such as Crypto Assets Mortgage Loans, Operating Blockchain Nodes, etc.
• Meaning: Open up a compliance entry channel for traditional capital at the trillion-dollar level, fundamentally changing the funding structure of the crypto market.

▍Political Struggles and Legislative Timetable The bill is in intense competition and an urgent agenda:

• Republican Position: Leader Cynthia Lummis emphasizes "ending regulatory chaos and reclaiming innovation leadership."
• Democrats Concerned: Elizabeth Warren warns that this framework could become a "backdoor to destroy a century of the securities law."
• Trump's Push: The President has made encryption legislation a core agenda and has signed the stablecoin bill (the "GENIUS Act").
• Schedule Discrepancy:
  • The Republican Party sets a September deadline (Banking Committee Chairman Tim Scott).
  • Industry Warning (Solana Policy Institute Kristin Smith): Due to the squeezing of priorities such as defense authorization and agricultural legislation, it may be delayed until 2026.

▍Market Evaluation: A Milestone Attempt to Balance Regulation and Innovation The crypto industry welcomes with caution:

• Paradigm Vice President Justin Slaughter: "The disclosure requirements substantively respond to the demands of opponents, similar to the crypto-exclusive disclosure system envisioned by former SEC Chair Gensler."
• SEC Commissioner Hester Peirce (historical perspective): "Technology does not change the essence of the asset, security tokens are still securities" (implying that some assets still struggle to escape SEC jurisdiction).

Conclusion: The Senate Republican draft outlines a clear blueprint for U.S. crypto regulation—exempting mainstream tokens from securities law shackles through the classification of "ancillary assets," replacing comprehensive registration with a tiered disclosure system while opening doors to traditional financial institutions. If passed smoothly in September, it would disrupt the current regulatory logic and provide a certain framework for the industry. However, the fierce opposition from Democrats to the "loophole" in securities law, the jurisdictional struggles between the two chambers (Senate version vs. House's "Clarity Act"), and the congested legislative agenda in Congress pose significant variables. Regardless of the final version, this draft marks a critical shift in U.S. crypto policy from "hostile ambiguity" to "proactive establishment," potentially reshaping the global regulatory competitive landscape. Investors need to closely monitor the legislative sprint in September and the details regarding the certification standards for decentralized projects.