The new draft retroactively applies a control requirement to money transmitter qualifications, redefining a law unfit for the digital age.

The Senate Banking Committee has finalized a new draft of the Responsible Financial Innovation Act of 2025, also known as the market structure bill, after receiving industry feedback.

The former draft had included the so-called Blockchain Regulatory Certainty Act (BRCA), which exempted developers of non-custodial software from classifying as a money transmitter, granting a safe harbor.

The Committee's latest draft now goes well beyond the protections of the BRCA by retroactively amending existing money transmission laws and exempting non-custodial software from falling under the Bank Secrecy Act.

Prior to the release of the draft, over 100 industry players told the Committee that they would not support a market structure bill that does not include developer protections. A full Senate vote is expected by November or December.

But debates around the draft may become heated. This morning, Democrats published a market structure framework that calls on digital asset intermediaries to be accountable when turning a blind eye to criminal activity.

The Democrats additionally call for digital asset platforms to register with FinCEN and be regulated by the Bank Secrecy Act while proposing that market structure should "address bad actors' use of DeFi" and ensure that platforms serving US customers comply with sanctions and AML/CFT requirements.

...read more at therage.co