Lummis Says Crypto Bill Will Split Securities and Commodities
- The bill separates securities and commodities to clarify SEC and CFTC crypto oversight.
- Act mandates asset custody controls, audits, AML compliance, and 100%-reserve stablecoins.
- Tax relief for small crypto purchases plus consumer safeguards aim to support adoption.
U.S. Senator Cynthia Lummis said the Responsible Financial Innovation Act of 2026 will clearly separate securities from commodities. She made the statement on X, addressing U.S. crypto regulation. The bill targets regulatory clarity, investor protection, and agency oversight after years of disputes involving the SEC and CFTC.
Securities and Commodities
Lummis said the 2026 bill will “draw a clear line between securities and commodities,” according to her public statement. She explained that the distinction allows legitimate crypto projects to operate under predictable rules. Notably, she said clarity helps innovation while still preserving investor protections.
According to Lummis, uncertainty has slowed development across U.S. digital asset markets. However, the proposed framework attempts to address long-standing jurisdiction disputes. The bill clarifies which assets fall under securities laws and which qualify as commodities.
Under current law, securities are assets that represent ownership or debt in a business. Commodities, on the other hand, are physical goods like gold, oil, or farm products. In crypto, this distinction matters because it decides whether an asset falls under the SEC or the CFTC.
The bill assigns the CFTC jurisdiction over crypto assets that do not grant financial interests in entities. Conversely, assets linked to ownership or profit rights remain under SEC oversight. This division directly addresses the enforcement confusion that has dominated recent U.S. crypto cases.
What the Act Includes
The Lummis-Gillibrand Responsible Financial Innovation Act establishes broad crypto regulation standards. The bill lays out who does what, how consumers are protected, rules for stablecoins, and how crypto is taxed. It applies to crypto issuers, intermediaries, and custody providers.
Crypto firms that hold assets for customers would need to show they actually control or possess those assets. They would also be required to undergo yearly checks by independent accountants to confirm that the assets are there. These steps are meant to stop the misuse of customer funds.
The bill also allows for stronger customer protection and market integrity rules, but the SEC and CFTC would have to approve them before they take effect. This step ties oversight expansion to agency agreement.
Criminal penalties apply for violations involving financial recordkeeping requirements. Furthermore, the Treasury, SEC, and CFTC must assess compliance with anti-money laundering programs. The bill also covers countering the financing of terrorism obligations.
Stablecoin provisions remain strict under the proposal. Only depository institutions may issue stablecoins. Issuers must hold 100% reserves backing outstanding tokens and allow redemption at par value.
The bill also addresses taxation. Purchases using digital assets receive income tax exemptions when gains or losses stay under $200. This provision targets everyday transactions rather than speculative trading.
Related: Senator Lummis Calls Bitcoin “Freedom Money” for Americans
Strategic Bitcoin Reserve Fallout
While regulatory clarity advances, broader crypto policy faced setbacks during 2025. Notably, expectations around a U.S. Strategic Bitcoin Reserve collapsed. The policy originated from proposals associated with Senator Lummis.
In late 2024, advocates believed the U.S. would buy Bitcoin to offset national debt. Influencers promoted the idea aggressively across social platforms. However, the government never committed to Bitcoin purchases.
The White House later signed an executive order establishing a “Strategic Bitcoin Reserve.” However, the reserve only held approximately 200,000 BTC already seized by the Department of Justice. The government simply paused future sales.
No new Bitcoin purchases occurred under the order. As a result, expectations reversed sharply. Polymarket odds for a U.S. Bitcoin reserve by 2026 fell to 28%. Earlier in 2025, odds had peaked near 70%. However, probabilities declined as clarity emerged. The market gradually recognized the reserve as a rebranding of seized assets.
During this time, Lummis said she will not run for reelection in 2026. She has been one of the strongest supporters of Bitcoin-related policies in Congress. Her exit creates more uncertainty around the future of crypto laws.
The Responsible Financial Innovation Act of 2026 outlines crypto oversight, agency roles, and consumer safeguards. It also addresses stablecoins, taxation, and compliance requirements across markets. These elements reflect Lummis’s stated goal of separating securities from commodities while maintaining investor protections.
