What happened?
The US Senators have released a revised version of the Responsible Financial Innovation Act of 2025 that aims to clarify regulatory responsibilities of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The update also introduces protections for DeFi developers and emerging blockchain sectors like DePINs and proposes the creation of a Joint Advisory Committee on Digital Assets, comprised of members from both the SEC and CFTC.
Who does this affect?
The updated bill affects individuals and entities involved with digital assets, particularly DeFi developers, validators, and wallet builders. The bill provides explicit protection to these contributors as long as the protocols are not centrally controlled. It also impacts those involved with airdrops, staking rewards, and DePIN tokens, all of which would be exempt from securities laws under the bill’s new definitions.
Why does this matter?
The revised bill matters because it seeks to provide clarity in the crypto regulation realm, thereby potentially driving innovation and growth in the sector. By requiring the SEC and CFTC to publicly respond to any findings by their Joint Advisory Committee on Digital Assets, the bill pushes for greater transparency and coordination. Moreover, by providing legal protection to certain participants in the crypto sector and defining common crypto activities, it aims to reduce legal uncertainties and risks, encouraging broader participation.