According to @jchervinsky, the new US Senate crypto market structure draft explicitly clarifies that noncustodial software developers are not criminal money transmitters under Section 1960, the federal criminal money-transmitting statute (source: Jake Chervinsky on X, Sep 9, 2025; source: 18 U.S.C. § 1960). He describes this clarification as the litmus test for market structure, highlighting a clear distinction between noncustodial software and custodial financial intermediaries in the draft (source: Jake Chervinsky on X, Sep 9, 2025). For traders, the key takeaway is the draft’s express carve-out for noncustodial developers from Section 1960 criminal money-transmitter status, clarifying legal risk parameters for DeFi infrastructure and wallet software as the bill advances (source: Jake Chervinsky on X, Sep 9, 2025; source: 18 U.S.C. § 1960).

According to the report, Senator Tim Scott, chairman of the Senate Banking Committee, stated that legislation establishing rules for U.S. crypto markets will be finalized by September 30, potentially reducing regulatory uncertainty and stabilizing crypto prices for traders. Scott emphasized the need for the House to quickly approve the Senate-passed stablecoin bill (GENIUS Act), as this could expedite market clarity. However, challenges from the House and Senate Agriculture Committee may cause delays, as noted by Representative French Hill and Senator Cynthia Lummis, which could lead to short-term volatility in crypto markets.

According to Digital Sovereignty Alliance (@DSAForg) on Twitter, the GENIUS Act—a landmark stablecoin regulation bill—has officially passed in Washington D.C. (source: DSA Twitter, May 20, 2025). This new legislation establishes clear legal frameworks for stablecoin issuers in the U.S., enhancing regulatory certainty and potentially accelerating institutional adoption of regulated digital dollar products. Trading volumes for stablecoins and related cryptocurrencies are expected to increase as investors anticipate greater integration of compliant stablecoins into both crypto and traditional finance markets. These developments may drive renewed interest in U.S.-based stablecoin projects and DeFi protocols that utilize regulated digital assets, with significant implications for market liquidity and cross-border transactions.