Pro-cryptocurrency senators are preparing to introduce a landmark legislation this month, aimed at dividing the oversight of digital assets between market regulators.

What Happened: Sen. Cynthia Lummis (R-Wyo.) said that the Senate is gearing up to advance its push for crypto-friendly measures, Politico reported Tuesday. The House Republicans have already introduced the CLARITY Act, also known as the market structure bill, set for two separate hearings on Wednesday in the lower chamber’s Financial Services and Agriculture committees.

The proposed legislation aims to split cryptocurrency oversight between the Securities and Exchange Commission, supervised by House Financial Services and Senate Banking, and the Commodity Futures Trading Commission, monitored by Congress’s Agriculture committees. Put simply, it will clearly define whether cryptocurrencies like Bitcoin BTC/USD and Ethereum ETH/USD are securities or commodities.

Lummis confirmed that the Senate’s version of the bill would closely mirror the House bill. “We want to be bipartisan and bicameral,” she stated. She also suggested minor tweaks to the bill, with the intention of introducing it on a bipartisan basis.

See Also: Litecoin Enters Smart Contract Era With New Layer-2 Chain

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Why It Matters: The Senate has been actively working towards establishing rules for digital assets. Last month, the upper chamber voted in favor of advancing the GENIUS Act, also known as the stablecoin bill, overcoming a key procedural hurdle and paving the way for the bill's final passage. Lummis was confident that the bill would become law by next week.

The move to advance these bills comes in the wake of a growing recognition of the importance of clear regulatory policies for the cryptocurrency industry. In April, SEC Chair Paul Atkins highlighted the need for such policies to help the industry thrive in the U.S.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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