A group of Senate Democrats has outlined a set of conditions for supporting the Senate’s pending crypto market structure bill, placing particular emphasis on the political composition of the agencies that would enforce it.
The letter, circulated Tuesday by Sen. Ruben Gallego (D‑AZ), was signed by a dozen Democrats — including Mark Warner, Kirsten Gillibrand, Cory Booker and Adam Schiff — many of whom backed the stablecoin-focused GENIUS Act earlier this year. The group said it is willing to move forward with legislation only if the effort is meaningfully bipartisan.
At the top of the senators’ concerns is the current makeup of the SEC and the CFTC. By law both agencies must have five commissioners and no more than three from the same party. The letter argues that durable crypto rules require a bipartisan commission, and it criticized President Trump’s reluctance to appoint Democratic commissioners and recent firings of Democrats at other independent agencies.
The senators asked for multiple policy changes to the market structure bill, including assurances that new crypto rules will not weaken regulations for traditional securities; expanded CFTC authority over spot crypto commodities; measures preventing token-based capital raises from evading securities law; and direction for regulators to craft an “appropriate and effective” framework for DeFi — while preserving existing consumer protections.
Significantly, the letter asks that the Senate clarify that stablecoin issuers cannot circumvent the GENIUS Act’s intent by offering yield indirectly via affiliates — a point that aligns with objections from established financial firms and could intensify pushback from Wall Street.
Democrats warned against rushing the process: “Achieving a strong, bipartisan outcome will require time and cannot be rushed,” they said. With at least seven Democrats needed to join Senate Republicans to clear the chamber, the political makeup of regulators could be decisive.
Why it matters: The demand for bipartisan appointments raises the stakes beyond policy text — it makes regulator composition and agency funding central bargaining chips. Companies and compliance teams should watch nominations and committee timing closely, as outcomes will shape enforcement and market certainty.
Source: Decrypt. Read the original coverage for full details.