A newly revised draft of the Responsible Financial Innovation Act of 2025 has been released by US Senators, aiming to clarify the regulatory responsibilities of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Key Takeaways:
The updated 2025 crypto bill proposes clear roles for the SEC and CFTC, plus a joint advisory committee with mandatory public responses.
It includes protections for DeFi developers, validators, and wallet builders, so long as protocols are not centrally controlled.
Airdrops, staking rewards, and DePIN tokens would be exempt from securities laws under the bill’s new definitions.
The updated draft bill also introduces protections for DeFi developers and emerging blockchain sectors like DePINs.
Furthermore, it proposes the formation of a Joint Advisory Committee on Digital Assets, comprised of members from both the SEC and CFTC.
SEC and CFTC Must Respond Publicly to Crypto Committee Findings
While the committee’s recommendations would be nonbinding, both agencies would be required to publicly respond to any findings, signaling a stronger push for transparency and coordination.
“The SEC and CFTC must align to reduce regulatory overlap, eliminate unnecessary friction, and support innovation,” SEC Chairman Paul S. Atkins and CFTC Acting Chair Caroline D. Pham said in a joint statement.
The two agencies are also planning a public roundtable on September 29 to further discuss harmonization efforts.
Significantly, the draft includes explicit protections for developers and users in the decentralized finance (DeFi) space.
Developers who contribute to decentralized protocols, validators, liquidity providers, wallet builders, and infrastructure contributors would not automatically fall under traditional financial regulations, so long as the protocol isn’t centrally controlled.
This provision responds to growing concerns in the wake of legal actions like the conviction of Tornado Cash co-founder Roman Storm.
Critics argued the case blurred the line between software development and criminal liability, raising alarm throughout the developer community.
The bill also aims to ease regulatory fears over common crypto activities. Airdrops, staking rewards, and liquid-staking outputs are defined as “gratuitous distributions” that wouldn’t be considered securities offerings under current law, shielding users from unintended legal exposure.
DePINs and Tokenized Assets Included
For the first time, Decentralized Physical Infrastructure Networks (DePINs) receive specific treatment under federal law.
Tokens powering these networks would be exempt from securities classification if no single entity controls more than 20% of the supply.
The safe harbor is meant to support decentralized telecom, storage, and sensor networks that often rely on community participation.
The bill also addresses tokenized real-world assets (RWAs), noting that the act of tokenization doesn’t turn a non-security into a security.
It instructs regulators to study verification, custody, audit, and enforcement standards for RWAs, especially as more financial institutions explore blockchain-based asset issuance.
Senator Cynthia Lummis (R-WY), a key architect of the bill, said the goal is to present a reconciled version of the legislation for President Trump’s signature before the end of the year.
The Senate’s version will need to be aligned with the Clarity Act, which passed the House in July.
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