Democrats Unveil Crypto Framework, Targeting Ethics and Oversight
On September 9, a group of 12 Senate Democrats introduced a sweeping seven-pillar crypto framework. Led by figures like Ruben Gallego and Kirsten gillibrand, the proposal seeks to regulate digital assets more effectively. The document argues for stronger ethics rules to curb abuses like those allegedly involving President Trump and his family.
This initiative serves as a Democratic counter to the Republican Clarity act. Both plans aim to clarify regulations for the $4 trillion U.S. crypto market. however, Democrats emphasize preventing elected officials from profiting from digital assets while in office.
The core of the Democrats’ proposal involves shifting oversight powers. They suggest granting the commodity Futures Trading Commission control over digital commodity spot markets. This move would ensure major assets like Bitcoin adhere to financial integrity rules.
- Requires digital asset issuers to disclose technological details clearly.
- Forces platforms serving U.S. users to register as financial institutions.
- Aims to provide clear governance for decentralized finance (DeFi) protocols.
Senators believe legislation is the best way to safeguard consumers and investors while fostering growth in the digital asset industry.
The framework also addresses concerns about crypto-related corruption. Democrats cite the Trump familyS recent wealth surge, estimated at $1.3 billion due to a newly launched mining company and a DeFi protocol. The ruling accuses the family of leveraging digital assets for self-enrichment.
The upcoming debate will be intense. While Republicans seek regulatory clarity, Democrats prioritize stringent ethics rules.The outcome could reshape the future of the U.S. crypto market.
