Democrats unveil new market framework to counter Trump’s crypto footprint
Democrat lawmakers have introduced a comprehensive legislative blueprint aimed at reshaping U.S. digital asset regulation, proposing to close longstanding gaps in crypto oversight and restore investor confidence in the nearly $4 trillion market, according to a newly released framework.
The proposed plan would grant the Commodity Futures Trading Commission (CFTC) full jurisdiction over spot markets for digital commodities, tokens that do not qualify as securities, resolving the regulatory ambiguity that has left both businesses and investors without clear protections.
It also calls for the CFTC to be given new registration and enforcement authority, as well as mandatory disclosures and consumer protections for crypto trading platforms.
Tackling misconduct
The framework sets out seven core pillars for digital asset legislation, including clarifying token classification, adapting securities rules for token issuers, bringing crypto platforms under exchange-like regulation, and strengthening illicit finance safeguards.
It proposes a dual approach, empowering the SEC to integrate tokenized securities into existing disclosure regimes while instructing the CFTC to police non-security digital assets.
Both agencies would gain expanded funding and authority to regulate custody, margin, and conflicts of interest under crypto-native business models.
Significantly, the framework calls for new controls to prevent public officials from abusing digital asset projects.
It references President Donald Trump’s financial entanglements with crypto initiatives and seeks to bar elected officials and their families from issuing or profiting from tokens while in office, as well as mandates disclosure of all digital asset holdings.
DeFi and stablecoins
The bill also directs regulators to build new oversight models for DeFi protocols and to safeguard traditional markets from the destabilizing effects of unregulated innovations. It reiterates prohibitions on stablecoin issuers offering interest-bearing products, a provision preserved from the 2025 GENIUS Act.
To prevent criminal exploitation of the digital ecosystem, the framework mandates that all digital asset intermediaries, including those abroad serving U.S. customers, register with FinCEN and comply with anti-money laundering and sanctions obligations. DeFi protocols will also be scrutinized for compliance vulnerabilities.
Finally, the proposal highlights the need for bipartisan regulatory leadership. It would require the SEC and CFTC to maintain cross-party commissioner quorums for rulemaking and enable rapid hiring of staff with digital assets expertise.
According to the authors:
“This framework represents a turning point. It restores trust, prevents abuse, and ensures that America—not its adversaries—leads the next generation of financial innovation.”
The post Democrats unveil new market framework to counter Trump’s crypto footprint appeared first on CryptoSlate.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Mars Morning News | The Federal Reserve is expected to cut interest rates on Wednesday, S&P Global assigns a "B-" credit rating to Strategy
S&P Global has assigned a "B-" credit rating to bitcoin treasury company Strategy, classifying it as junk debt but with a stable outlook. The Federal Reserve is expected to cut interest rates by 25 basis points, with a possible split in the voting. The Hong Kong Securities and Futures Commission has launched a tender for a virtual asset trading monitoring system. Citi is partnering with Coinbase to explore stablecoin payment solutions. ZEC surged significantly due to halving and privacy topics. Summary generated by Mars AI. The accuracy and completeness of this summary are still being refined and updated by the Mars AI model.

BTC Volatility Review (October 6 - October 27)
Key indicators (4:00 PM Hong Kong time on October 6 -> 4:00 PM Hong Kong time on October 27): BTC/USD -6.4...

Cathie Wood warns: As interest rates rise next year, the market will be "chilled to the bone"
AI faces adjustment risks!
2025 Trading Guide: Three Essential Trading Categories and Strategies Every Trader Must Know
Clearly identify the type of transaction you are participating in and make corresponding adjustments.
