Cynthia Lummis (R-WY) and Kirsten Gilibrand (D-NY), two prominent U.S. Senators, are redoubling their efforts to develop a legislative framework to regulate the developing digital asset sector. On CNBC’s Squawk Box, the pair announced their most recent effort to enact an updated version of the cryptocurrency regulation bill that they jointly introduced last year. This occurs in a time when the market for digital currencies is both flourishing and facing formidable obstacles.

The Securities and Exchange Commission filed lawsuits in June against the two biggest cryptocurrency exchanges, Binance and Coinbase, bringing attention to the legal challenges the sector is facing. This action, which classified almost a dozen tokens as securities, unpredictably rocked the market and raised questions about the course that digital currencies will take in America.

Positively, on June 15, numerous companies, including BlackRock, Invesco, Valkyrie, and Ark Invest, followed BlackRock’s example and submitted applications for exchange-traded funds in Bitcoin spot markets. The price of Bitcoin was heavily driven by this trend, which raised it to a level not seen since the previous year.

Lummis and Gilibrand are optimistic about the current version of their law, an updated version of last year’s Responsible Financial Innovation Act, in spite of these obstacles and opportunities. The first version intended to clarify some of the trickiest parts of cryptocurrency regulation, such as classifying a token as either a security or a commodity, which would determine whether the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC) would be the primary regulator.

The most efficient route to regulatory clarity, consumer protection, and market reform in the ecosystem of digital assets is through bipartisan legislation.

Regarding the SEC’s present approach to cryptocurrency regulation, Lummis pointed out that Congress and the SEC both have responsibility for the existing murky legal landscape. In her words, “The current erratic regulatory framework is the result of both Congress’s hesitation to pass a bill and the SEC’s failure to provide proactive guidance to companies.” She gave her word that the streamlined draft will take regulatory and industry stakeholder views into account.

The revised RFIA received a favorable response from the crypto community. According to Georgia Quinn, general counsel for Anchorage Digital, it is a “significant step forward from the Senate.” In her statement, she emphasized that “bipartisan legislation is the most effective path towards regulatory clarity, consumer protection, and market reform in the digital asset ecosystem.”

However, Gabriel Shapiro, general counsel for Delphi Labs, had a more circumspect reaction to the revised legislation. He highlighted concerns over other elements of the bill that would lead to misunderstanding and issued a warning about potential confusion caused by the bill’s appearance of being “too deferential” to current securities laws.

The bill’s backers are working to make it a bipartisan endeavor even though it is still in the process of moving through two House committees run by the GOP. One of the main proponents of the legislation, Rep. Patrick McHenry, chair of the House Financial Services Committee, stated his desire for the final legislation to be bipartisan. House Democrats have expressed concerns about parts of the measure that they feel could protect wrongdoers and undermine the SEC, even though they aren’t totally against it.