US Legislation Introduces Comprehensive Framework for Digital Asset Regulation

Senator French Hill has unveiled a significant legislative proposal aimed at establishing a clear regulatory landscape for digital assets in the United States. Dubbed the “Digital Asset Market Transparency Act of 2025,” or “TRANSPARENCY Act of 2025,” this bill has garnered bipartisan support, with three Democratic co-sponsors joining the effort to bring much-needed clarity to the rapidly evolving crypto industry.

This legislation seeks to delineate the responsibilities of key regulatory agencies, specifically the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), in overseeing digital assets. The bill aims to resolve ongoing ambiguities about which authority is responsible for regulating various types of cryptocurrencies and tokens, providing a unified framework for compliance and enforcement.

Key Provisions and Industry Impact

Under the TRANSPARENCY Act, developers and project teams would be mandated to provide comprehensive disclosures about their operations, ownership structures, and developmental milestones. This transparency requirement is designed to foster trust and accountability within the digital asset ecosystem.

Furthermore, the bill introduces stringent compliance standards for consumer-facing entities such as brokers and exchanges. These standards include mandatory clear disclosures to users, segregation of client funds from corporate assets, and measures to prevent conflicts of interest through rigorous registration processes, operational transparency, and adherence to best practices.

Another critical aspect of the legislation is the creation of “full registration regimes,” which would enable digital asset companies to operate legally within the U.S. market. This move aims to facilitate innovation while ensuring consumer protection and market integrity.

Statements from Key Stakeholders

Congressman Ritchie Torres emphasized the importance of establishing definitive rules, stating, “The TRANSPARENCY Act will set clear guidelines that entrepreneurs, investors, and consumers deserve, fostering a safer and more predictable environment for digital assets.”

The bill originated from the House Committee on Financial Services, which previously advanced the FIT21 Act-legislation that passed the House but faced hurdles in the Senate. Public hearings on the proposed market structure legislation commenced earlier this year, specifically during a subcommittee session focused on digital resources, financial technology, and artificial intelligence.

Broader Legislative Focus: Stablecoins and Market Infrastructure

In addition to the TRANSPARENCY Act, Congress has been actively examining issues related to stablecoins and market infrastructure. These areas have been at the forefront of legislative discussions as lawmakers seek to regulate the burgeoning cryptocurrency sector effectively.

Representative Ro Khanna highlighted that Congress might pass both a stablecoin bill and a comprehensive market structure law within the current session. The stablecoin legislation, known as the GENIUS Act, has already cleared a procedural vote in the Senate and is awaiting full consideration. This bill aims to establish a regulatory framework for stablecoins, which are digital currencies pegged to traditional assets, to ensure stability and consumer protection.

The Trump administration has actively supported the GENIUS Act, with Treasury officials and crypto industry advocates publicly endorsing its passage. However, the legislation has faced opposition from some Democrats concerned about potential conflicts of interest and the influence of political ties within the crypto space.

Current Trends and Future Outlook

As the digital asset market continues to expand-reaching an estimated valuation of over $3 trillion globally in 2023-U.S. policymakers are increasingly focused on establishing a balanced regulatory approach. The goal is to promote innovation and economic growth while safeguarding investors and maintaining financial stability.

Recent developments suggest that comprehensive legislation like the TRANSPARENCY Act could serve as a blueprint for future regulations, fostering a more transparent, secure, and competitive environment for digital assets in the United States. Industry experts anticipate that these legislative efforts will accelerate the mainstream adoption of cryptocurrencies and blockchain technology in the coming years.

For more updates on crypto regulation and market developments, stay tuned to our coverage of legislative initiatives shaping the future of digital finance.