Today in Crypto: Lummis Bill Markup, CFTC Pilot, Netscape Moment
U.S. Senator Cynthia Lummis said she expects a markup of the Senate Banking Committee’s digital asset market structure legislation before Congress adjourns for the holidays, as efforts to advance the bill continue.
Speaking Tuesday at the Blockchain Association Policy Summit, Lummis indicated the markup for the Responsible Financial Innovation Act — the committee’s market structure proposal co-led with Senator Kirsten Gillibrand — could be scheduled next week. She noted the bill’s draft language has shifted frequently during bipartisan negotiations and said staff have been working extensively ahead of the targeted markup.
Senator Cynthia Lummis (center) speaking at the Blockchain Association Policy Summit on Tuesday. Source: Blockchain Association
A markup allows lawmakers to propose and vote on amendments before a bill proceeds to the Senate floor. The Banking Committee released a discussion draft in July, following House passage of the Digital Asset Market Clarity Act, but subsequent progress slowed amid a prolonged government funding impasse and reported concerns from some lawmakers regarding decentralized finance provisions.
Crypto approaches a “Netscape moment” amid infrastructure gains and regulated products
The cryptocurrency sector is nearing a mainstream inflection point as blockchain infrastructure matures and regulated investment vehicles expand, Paradigm co-founder Matt Huang said.
In a post on X on Sunday, Huang wrote that crypto is approaching its “Netscape” or “iPhone” moment, with both institutional and cypherpunk segments of the industry scaling meaningfully. Netscape introduced an accessible web browser in 1994 and completed a widely watched initial public offering in August 1995, catalyzing broader internet adoption. Microsoft later leveraged the momentum by bundling Internet Explorer with Windows, ultimately surpassing Netscape in market share.
Source: Matt Huang
In crypto, Bitcoin’s (BTC) peer-to-peer design and decentralized finance (DeFi) have supported an open, programmable financial architecture, while centralized platforms and traditional products have drawn increasing capital due to usability and established regulatory frameworks. Approximately 200 crypto-based exchange-traded products could debut over the next year, with 155 pending as of Oct. 22, according to Bloomberg senior ETF analyst Eric Balchunas.
CFTC launches pilot to permit crypto as collateral in derivatives
The U.S. Commodity Futures Trading Commission issued updated guidance for tokenized collateral and opened a pilot program to test the use of cryptocurrencies as collateral in derivatives markets.
Collateral in derivatives functions as a security deposit to cover potential losses. Announced Monday by CFTC Acting Commissioner Caroline Pham, the pilot will allow futures commission merchants (FCMs) to accept Bitcoin (BTC), Ether (ETH), and Circle’s USDC (USDC) as margin collateral.
Circle CEO Heath Tarbert said the pilot can enhance customer protections, reduce settlement frictions, and support risk mitigation. Pham said the program sets defined safeguards for customer assets and strengthens CFTC oversight and reporting.
Source: Caroline Pham
Participating FCMs must meet stringent reporting obligations, including weekly disclosures of total customer holdings and any material issues affecting the use of crypto as collateral.
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