Senate Democrats Unveil Framework for Cryptocurrency Market Structure Legislation
Senate Democrats introduced a framework for cryptocurrency market structure legislation, outlining how digital assets should be regulated in the U.S. Key points include:
- Seven pillars focusing on fair regulation to protect consumers and investors
- Clarification of regulatory jurisdictions for cryptocurrencies
- Regulatory frameworks for issuers and platforms
- Measures to prevent illicit finance and corruption
The framework has bipartisan support, with several senators previously backing related legislation. It emphasizes the need for clear regulations to foster innovation while protecting market participants. The document highlights that the CFTC lacks resources for overseeing crypto spot markets, calling for both the SEC and CFTC to establish new oversight frameworks.
Additionally, it proposes registering all digital asset platforms as financial institutions with FinCEN, aiming to track illicit activities. A contentious point is the sixth pillar's focus on preventing corruption, suggesting limitations on elected officials profiting from digital assets during their term.
This framework may facilitate discussions between parties, especially as a Republican-led bill is also under consideration in the Senate.