- Democrats push for bipartisan crypto bill amid Republican-led draft.
- Senate Democrats demand more involvement in shaping crypto regulation framework.
- Lawmakers seek stronger role for CFTC, clearer SEC guidelines on crypto.
Twelve Senate Democrats are calling for a more inclusive and bipartisan process in drafting the crypto market structure legislation currently making its way through Congress. In a recent statement, the lawmakers urged their Republican colleagues to allow for genuine collaboration, stressing that such an important piece of legislation requires input from both parties.
The statement was signed by key Democratic figures, including Senators Kirsten Gillibrand (D-NY), Cory Booker (D-NJ), Ruben Gallego (D-AZ), and Mark Warner (D-VA). These lawmakers have previously unveiled a seven-pillar framework for regulating U.S. crypto markets, setting the stage for broader bipartisan talks. They argue that while Republicans have already passed their draft of the Clarity Act in the House, the Senate’s version should be shaped by cooperation, not just one-sided contributions.
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Democrats Push for Stronger Role in Shaping Crypto Regulation
The Democrats’ request is clear: they want a seat at the table, not just the ability to offer comments on a bill written solely by Republicans. Reports indicate that Democrats are seeking closer coordination with the Senate Agriculture Committee, which oversees the Commodity Futures Trading Commission (CFTC), in order to strengthen the regulatory oversight of the growing crypto industry.
As Republicans and Democrats continue to debate the direction of crypto regulation, Senate Banking Republicans have shown some willingness to extend the timeline for public input, though the details are still being worked out. The latest Republican draft suggests creating a joint committee between the SEC and CFTC to ensure regulatory harmonization. This proposal acknowledges the historical differences between the two agencies’ approaches to digital assets.
However, Senate Democrats are pushing for a more robust role for the CFTC in overseeing spot markets for non-security tokens. Additionally, they want clearer guidelines on when the SEC can classify a token as a security. In a notable shift, the Democrats are also seeking to prevent elected officials and their families from profiting off crypto projects while in office, targeting concerns over conflicts of interest with former President Donald Trump’s dealings in the crypto space. The Democrats’ proposal also calls for increased funding for regulators to better manage the rapidly evolving industry.
With both sides vying for control over the crypto regulatory framework, the pressure is mounting for Congress to find a path that balances innovation with accountability. As the debate intensifies, the coming weeks will be crucial in determining how the bill evolves.
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