Senate Democrats released a six-page market-structure framework this week setting out seven priorities for how digital assets should be governed in the U.S. The plan aims to clarify whether tokens fall under the SEC or CFTC, tighten oversight of spot markets, and add anti-corruption safeguards that would restrict elected officials and their families from issuing or profiting from crypto while in office.
The framework — signed by Senators Ruben Gallego, Mark Warner, Kirsten Gillibrand, Cory Booker and others — positions itself as a Democratic response to several GOP-authored market-structure drafts circulating in the Senate. Many signatories previously supported the GENIUS Act on stablecoins, signaling potential willingness to negotiate a broader bill, but the document also raises flashpoints that could slow bipartisan progress.
What it proposes: lawmakers break the agenda into seven “pillars,” including closing gaps in the spot market for non-security tokens; clarifying regulatory jurisdiction between the SEC and CFTC; bringing issuers and trading platforms into a clear regulatory framework; blocking illicit finance by registering digital-asset platforms as financial institutions with FinCEN; and drafting measures to prevent corruption tied to digital assets.
The paper explicitly calls out concerns that President Donald Trump and his family have used digital-asset projects to enrich themselves and recommends limits and disclosure rules for elected officials — a provision that previously delayed parts of stablecoin legislation and could become a key point of contention.
Democrats also note that the CFTC currently lacks sufficient resources to police spot crypto markets and urge both agencies to develop tailored oversight plans. The White House crypto adviser has said senators from both parties are being consulted; Republicans on the Banking Committee aim to move their bill quickly.
Why readers should care: this framework sketches the regulatory contours that will shape exchanges, issuers and custody providers. If adopted, it would raise compliance requirements across the industry and could change which agency enforces different products. Political disputes over anti-corruption language may determine whether Congress produces a unified law or patchwork rules.
Risk note: negotiations over jurisdiction, enforcement resources and anti-corruption provisions create uncertainty for markets and firms. Companies should monitor rule-making closely and prepare for stricter FinCEN registration and disclosure obligations.
Source: Senate Democrats’ Market Structure Framework (PDF). Read the original framework for full details.