The Senate Democrats revealed their own framework for market structure legislation to define how Cryptocurrencies fit into the current or future legislative framework in the United States, including how Securities and Exchange Commission and Commodity Futures Trading Commission should oversee the digital asset sector.
Legislators’ framework published on Tuesday erected seven “key pills,” including calls for fair regulation that protects consumers and investors, defines how digital assets fit into the jurisdictions of various regulators and “prevention of corruption and abuse.” Republicans in the Senate Bank Committee have already released several drafts of their own market structure proposals, which committee chairman Tim Scott said should be through the Senate in late September.
Senators Ruben Gallego, Mark Warner, Kirsten Gillibrand, Cory Booker, Catherine Cortez Masto, Ben Ray Lujan, John Hickenlooper, Raphael Warnock, Adam Schiff, Andy Kim, Lisa Blunt Rochester and Angela Alsobrooks signed. All except two of these legislators – Hickenlooper and Kim – had previously voted for the Genius Act, a law that regulates stablecoins in the United States, which suggested that these are members who may be willing to support this more consequence legislation. Gillibrand has previously sponsored several bills with Republican Cynthia Lummis relating to Krypto. Any bill needs top species support to move on through the Senate.
“We owe the millions of Americans who participate in this market to create clear rules for the road that protect consumers and protect our markets,” the legislators said in a statement. “We must also ensure that digital assets are not used to finance illegal activities or to link the pockets of politicians and their families.”
Their framework claims that the existing regulatory regime in the United States has “heaped both innovation and consumer protection,” and it called for legislation to clarify how digital assets that are not securities fit into the rules and how they would be regulated. The seven columns include “closure of the gap in the spot market” for cryptocurrencies that are not securities; clarification of legislative jurisdiction; to bring issuers into a regulatory framework; To bring other platforms into a frame; blocks illegal funding; Prevention of corruption through crypto and “ensuring fair, effective regulation.”
The new crypto adviser Patrick Witt said in a Coindesk interview this week that the GOP-driven effort has sought input from the Democrats to ensure a bill that can adopt the Senate. This document can be as the most significant answer so far, giving both parties something more concrete to talk about.
The 6-page document notes that CFTC does not currently have the resources to properly oversee the Crypto Spot markets, and this calls on both this agency and SEC to provide a new framework to oversee their respective parts of the digital asset sector.
It also called for the legislation to have all digital active platforms to register as “financial institutions” with the financial crime network (Fincen)An American Ministry of Finance’s department, which is tasked with tracking illegal funding.
An adhesive point can come through the sixth column, entitled “Prevention of Corruption and Abuse.”
The episode said that US President Donald Trump “has approached digital asset projects to enrich himself and his family,” and said that the legislation should “limit elected officials and their families from issuing, approving or taking advantage of digital assets while in office” and demanding information.
Similar arguments contributed to an attitude in the passage of the Genius Act earlier this year, but the bill eventually adopted without any provisions that blocked Trump or his family from participating in crypto.
In a statement, Senator Elizabeth Warren, the supreme Democrat of the Bank Committee, said “producing a new crypto regulation regulation requires legislation that can pass both parliament and the Senate.”
“So far, instead of working with us, Republicans have produced two Partisan drafts – including a recent proposal that reportedly reflects secret feedback from the industry and other stakeholders that Republicans refuse to share with the committee’s Democrats, or the public,” she said, adding that this feedback should be shared publicly.
Read more: New
Update (9 September 2025, 18:33 UTC): Adds Warren declaration.
