Senate Democrats Unveil Crypto Regulatory Framework in Response to Trump’s Influence

Senate Democrats have introduced a seven-pillar regulatory framework aimed at bringing clarity to the $4 trillion U.S. crypto market. The proposal grants the CFTC oversight of digital commodity spot markets and mandates issuer transparency, positioning itself as a counterweight to the GOP's Clarity Act.

The framework includes stringent ethics rules designed to prevent elected officials from profiting from cryptocurrency ventures. Democrats cite former President Trump's alleged use of digital assets to enrich his family as a key rationale for these provisions, calling it "corruption with no modern precedent."

Twelve Democratic senators, including Ruben Gallego and Kirsten Gillibrand, unveiled the plan on September 9. The proposal sets the stage for high-stakes negotiations that will shape the future of cryptocurrency regulation in the United States.