Catenaa, Wednesday, September 10, 2025- Senate Democrats unveiled a seven-pillar framework Tuesday to regulate US cryptocurrency markets, marking the party’s strongest legislative push to date.
The plan sets the stage for bipartisan negotiations with Republicans, who are advancing their own proposal known as the Clarity Act.
The Democratic framework expands the Commodity Futures Trading Commission’s authority over spot markets for non-security tokens.
It also introduces a process to determine when a digital asset falls under the Securities and Exchange Commission’s oversight.
Lawmakers emphasized investor protections, tighter disclosure standards for token issuers, and stricter rules for exchanges and custody providers.
The proposal requires crypto platforms serving US users to register with the Financial Crimes Enforcement Network as financial institutions.
That would place exchanges, custodians, and intermediaries under the Bank Secrecy Act and anti-money-laundering rules.
Democrats also raised concerns about decentralized finance, calling for new oversight tools to curb illicit activity without mandating full registration for software developers.
One of the most debated sections prohibits stablecoin issuers from offering interest or yield programs.
The framework also sets new ethics standards, banning elected officials and their families from launching or profiting from crypto ventures while in office. Democrats accused President Donald Trump of using digital asset projects to enrich his family, raising partisan tensions.
With Republicans pushing for faster action through the Clarity Act and Democrats demanding stricter guardrails, Senate Banking Committee talks are expected to intensify in the coming weeks.
