Twelve U.S. senators announced a comprehensive framework on Sep 9, 2025 to guide forthcoming crypto market structure legislation. The Democrats’ proposal emphasizes a bipartisan approach and outlines seven key pillars, including consumer protections, robust anti-illicit finance measures, and clear delineation of SEC and CFTC jurisdiction over digital assets.
The framework calls for mechanisms to close regulatory gaps, particularly in spot markets where certain digital assets fall outside existing securities definitions. Enhanced resources and leadership at the Commodity Futures Trading Commission are proposed to oversee derivatives markets, complemented by SEC oversight of token offerings that meet securities criteria. The document also recommends stringent restrictions to prevent elected officials and family members from profiting from digital asset ventures while in office.
Senators stressed the importance of carve-outs for payment stablecoins, reflecting the need for interoperable and transparent payment rails. The framework advocates licensing standards for custodial service providers and AML/KYC requirements aligned with global norms. Public comment periods and industry consultations are envisioned to refine the legislative text, with an eye toward passage by 2026.
The Democrats’ market structure blueprint arrives amid parallel Republican efforts on the Responsible Financial Innovation Act. Negotiators aim to reconcile differences on stablecoin definitions, regulatory perimeters, and enforcement authorities. Achieving consensus may hinge on balancing innovation incentives with financial stability safeguards. Congressional leaders from both parties have indicated willingness to incorporate input, underscoring the high stakes of establishing legal certainty for the digital asset ecosystem.
As debates progress, stakeholders will monitor hearings, draft revisions, and alignment with ongoing global regulatory initiatives. The outcome is expected to shape the U.S. role in crypto governance and influence investment flows, market integrity, and consumer trust in the burgeoning digital economy.
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