The Crypto Finance Bill: How Separating Securities and Commodities Reshapes the US Market

A New Regulatory Framework for Cryptocurrencies

The 2026 Lummis-Gillibrand legislative proposal represents a decisive attempt to resolve years of jurisdictional conflict between the SEC and the CFTC regarding cryptocurrencies. Rather than making vague statements, the bill establishes a true governance model that clarifies which authority supervises which digital asset.

The core of the framework lies in the distinction between securities and commodities. Crypto assets that do not confer ownership rights or profit-sharing are under the CFTC, while those tied to financial interests remain within the SEC’s jurisdiction. According to Senator Lummis, this demarcation allows legitimate projects to operate with predictable and transparent rules, accelerating sector innovation.

Structural Protections and Compliance Standards

The bill introduces strict measures to protect consumers and ensure market integrity. Crypto platforms that custody assets for clients must now undergo annual audits conducted by independent auditors. This requirement aims to prevent custody fraud and ensures that client assets are effectively controlled by the companies.

For stablecoins, the requirements are even more stringent. Only authorized institutions will be able to issue them, and they must maintain 100% reserves to fully cover the circulating tokens. Issuers must also guarantee redemption at face value, creating an international standard for stability.

The framework also includes strict provisions on anti-money laundering (AML) and counter-terrorism financing. The Treasury, SEC, and CFTC will jointly assess compliance with these programs, with criminal penalties provided for violations of financial registration requirements.

Tax Incentives and Retail Market Inclusion

Among the lesser-known but significant provisions is a tax relief for small cryptocurrency purchases. Transactions made with digital assets are exempt from income tax when gains or losses do not exceed $200. This measure is designed to encourage mass adoption without promoting high-frequency speculative trading.

The Political Context: Hopes and Disappointments

However, the US crypto regulatory landscape experienced significant setbacks in 2025. Expectations regarding a federal Bitcoin Strategic Reserve turned into disillusionment. Although the White House signed an executive order to establish the reserve, it contains only about 200,000 BTC seized by the Department of Justice, with no new Bitcoin purchases by the government.

The chances of a Bitcoin reserve by 2026 have plummeted from 70% at the start of 2025 to 28% on Polymarket. The market has understood that the so-called “strategic reserve” was simply a rebranding of already confiscated assets.

Furthermore, Senator Lummis’s announcement that she will not run for re-election in 2026 poses new challenges for the future of crypto legislation in Congress. The senator has been one of the main supporters of Bitcoin initiatives in Washington, and her absence will create a significant void in the legislative push.

The Broader Significance of the Bill

Beyond technical details, the bill represents an evolution in how the United States conceptualizes digital assets. Rather than treating them as a completely new category outside existing regulatory authorities, the framework integrates them into the consolidated oversight system, assigning clear roles to the relevant agencies.

This approach reflects an attempt to balance investor protection and market innovation. Compliance measures are strict, but the rules are transparent, creating certainty for entrepreneurs and developers. The Responsible Financial Innovation Act 2026 bill remains one of the most concrete efforts so far to build a regulatory architecture for the cryptocurrency sector at the federal level.