The Senate Banking Committee has introduced a comprehensive bill aimed at regulating the cryptocurrency market, focusing on clarifying regulatory frameworks for digital assets. This initiative follows years of legislative efforts, seeking to establish a structured approach to oversight. The proposed bill aims to resolve the challenges posed by overlapping regulatory responsibilities between the SEC and CFTC, potentially impacting major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). The bill’s introduction comes after Senator Tim Scott and Cynthia Lummis’s work on this subject. A key aim is to redefine digital asset classifications and clarify regulatory duties, ultimately fostering improved collaboration among market players. This initiative could significantly impact institutional involvement in the cryptocurrency sector. The SEC has also released a framework for analyzing investment contracts of digital assets to guide its understanding and regulation of this new field.