Lummis Pushes Market Structure Bill: Targeting Illicit Finance While Protecting Innovation

U.S. Senator Cynthia Lummis has emerged as one of the most prominent advocates of comprehensive regulation for digital assets. She has long championed bipartisan legislation designed to clearly define the structure of the crypto market, strengthen consumer protection, and more effectively combat illicit financing. In late December 2025, Lummis reiterated that the proposed bill is built on cooperation between the public and private sectors. According to her, this partnership is key to improving the detection of financial crime without stifling technological innovation. In a public statement, she said the legislation aims to protect Americans while creating a safe environment for digital assets to grow.

Shared Principles With Republican Colleagues Lummis is not working alone on the proposal. She is collaborating on the core principles of the legislation with Senate Banking Committee Chair Tim Scott, along with Senators Thom Tillis and Bill Hagerty. Together, they have outlined a framework intended to encourage innovation, enhance consumer protections, and recognize tokenization as an important evolution in modern finance. A central element of these principles is the fight against money laundering. The proposal includes clear compliance requirements for centralized intermediaries, stronger safeguards to limit illicit activity, and support for cooperation between government agencies and private companies to improve detection capabilities. Lummis has repeatedly emphasized that the bill is aimed squarely at bad actors and does not pose a threat to legitimate innovation or technological progress in the crypto space.

Legislation Still Pending as the Clock Ticks At the time of publication, the bill remains in the middle of bipartisan negotiations. Some market participants had expected faster progress by the end of 2025, but discussions have been pushed into early 2026. Lummis’s Senate term expires in January 2027, and she has made it clear she wants to see the bill passed before leaving office. In her view, the legislation is critical to ensuring that the growth of digital assets remains in the United States rather than moving overseas due to regulatory uncertainty.

Announcement of Her Political Departure Lummis has also recently announced that she will not seek re-election when her current term ends. As chair of the crypto subcommittee of the Senate Banking Committee, she has been widely regarded as one of the strongest political supporters of the crypto industry in Washington. She cited the demanding and exhausting final weeks of the current Congress as a key reason for her decision, saying she has come to terms with not committing to another six years in office. Her announcement sparked strong reactions across the crypto industry. For example, David Sacks, the White House adviser on artificial intelligence and cryptocurrencies, described her as an exceptional ally to the sector and expressed regret over her departure. Conner Brown of the Bitcoin Policy Institute echoed similar sentiments, calling Lummis the “first and best Senate expert on Bitcoin.” According to Brown, the crypto community was extraordinarily fortunate to have her leadership during many pivotal moments in U.S. bitcoin and crypto policy over these critical years.

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