- Twelve Senate Democrats rolled out a crypto reform plan pushing for bipartisan talks, tighter oversight, and clear rules for digital markets.
- The proposal strengthens SEC and CFTC authority, demands plain-English disclosures, and blocks politicians from profiting off crypto while in office.
- Republicans want speed while Democrats urge caution, yet both sides now admit crypto’s $4T market can’t stay unregulated any longer.
In Washington twelve Senate Democrats unveiled a comprehensive framework for U.S. crypto market structure legislation. The group argued that the nearly $4 trillion global crypto market and millions of American participants are too significant to remain in a regulatory vacuum. They positioned their proposal as a roadmap for “robust, fruitful, bipartisan negotiations” with Republicans, highlighting both cooperation and clear priorities.
As confirmed by reporter Elearnor Terret on X, The senators—led by Ruben Gallego, Mark Warner, Kirsten Gillibrand, and Cory Booker—outlined seven pillars they believe must anchor reform. They stressed that proper guardrails could ensure responsible innovation while preventing abuse, illicit activity, and corruption. Seven Pillars of Reform
The framework proposes giving the CFTC authority over non-security tokens with new disclosure and anti-manipulation rules. Additionally, it calls for a formal process to determine whether a token is a security or commodity, reducing costly litigation.
Moreover, tIssuers of tokens would have to provide clear disclosures regarding insider ownership, governance, and the use of proceeds. Platforms would be subject to additional SEC regulations on custody, pricing, conflicts of interest, and DeFi oversight that are unique to the cryptocurrency space.
Consequently, the proposal also tackles illicit finance by requiring platforms to register as banks with FinCEN and comply with AML standards. Another critical point restricts elected officials and their families from profiting from crypto projects during office terms. Finally, the framework suggests boosting SEC, CFTC, and Treasury resources to ensure strong, bipartisan rulemaking.
Political Dynamics and Market Impact
Timing may become a major challenge. Republicans, encouraged by President Trump, want to accelerate legislation. Democrats, however, insist careful negotiations are needed. “Achieving a strong, bipartisan outcome will require time and cannot be rushed,” the group said.
Besides, ethical clauses and DeFi oversight could spark divisions, making bipartisan alignment more complex. Still, Democrats signaled they are not rejecting reform but instead slowing the pace. Consequently, the proposal creates new momentum toward comprehensive oversight of digital assets.
Crypto regulation is no longer optional. With both parties now invested, the debate is shifting from if to how fast reforms can materialize.
