Corporations Amendment (Digital Assets Framework) Bill 2025; Second Reading

Holzberger supported the bill, citing the need to protect consumers from losses similar to those experienced during the FTX and First Guardian collapses. Holzberger argued that the legislation provides clarity for operators and reduces regulatory uncertainty that has hindered investment. Holzberger noted that the bill allows the minister to adapt rules quickly to technological changes, ensuring protections remain fit for purpose.

Aldred stated that the opposition would not oppose the bill in the House but would seek Senate committee scrutiny. Aldred highlighted a drafting error from 2011 that resulted in ASIC collecting unauthorised fees for 14 years, which the bill retrospectively validates. Aldred argued that this retrospective legislation raises accountability issues and that the committee should examine whether affected businesses should receive refunds or credits.

Jarrett stated that the legislation classifies digital asset and tokenised custody platforms as financial products, bringing them under standard consumer protection rules. He contended that the law stops firms from keeping unlimited client funds without safeguards and aids in eliminating dishonest participants from the market. Jarrett observed that minor operators handling under $10 million in transactions would not need to obtain a licence.

Watson-Brown stated that the Greens support the bill to regulate digital assets under financial services laws, ensuring strong consumer protections. Watson-Brown argued that ASIC needs the power to regulate these platforms while ensuring that new technologies do not displace traditional banking services. Watson-Brown raised concerns about the closure of local bank branches and the government's delayed response to Senate inquiry recommendations on the issue.

Jordan-Baird argued that the bill addresses regulatory gaps that have left consumers exposed to fraud and mismanagement, citing the collapse of FTX. Jordan-Baird stated that the legislation introduces digital asset platforms and tokenised custody platforms into the financial services laws, requiring operators to hold an Australian financial services licence. Jordan-Baird noted that the bill aligns Australia with global standards and helps mitigate risks associated with crypto scams.

Spender supported the bill, arguing that it provides necessary regulatory clarity for the digital assets industry. Spender stated that the legislation enables legitimate firms to distinguish themselves from less scrupulous operators and fosters growth in the sector. Spender suggested that the government could further support innovation by granting ASIC power to recognise equivalent foreign regulatory arrangements.

French argued that the bill brings clarity and accountability to the digital asset sector, protecting consumers from governance failures. French stated that the legislation applies the concept that identical activities carrying identical risks should face identical regulation to digital platforms. French highlighted that the bill includes exemptions for small operators and an 18-month transition period to support innovation while managing systemic risks.