Senate Democrats Lay Out New Strategy To Regulate Crypto

By Anthony • September 9, 2025 6:28 pm • Comments

Democrats are looking to regulate the cryptocurrency market.

This week, nearly a dozen Democrats have been working on a new framework to regulate the crypto market.

The Democrats’ move comes as the Republicans have also been making amendments to a bill they drafted in July.

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The Hill reported more details on the Democrats’ plans and hw they plan to regulate the crypto market:

A dozen Senate Democrats on Tuesday laid out the key principles they hope to see in a bill regulating the cryptocurrency market.
The framework, put forward by Sens. Ruben Gallego (D-Ariz.), Mark Warner (D-Va.), Kirsten Gillibrand (D-N.Y.), Cory Booker (D-N.J.) and other crypto-friendly Democrats, offers up their view on the central issues underpinning market structure legislation.

“The framework is a substantive road map to guide what we hope will be robust and fruitful bipartisan negotiations and ultimately, a bipartisan product,” they said in a statement. “Achieving a strong, bipartisan outcome will require time and cannot be rushed. We look forward to working on this with our Republican colleagues.”

Senate Republicans released their own discussion draft in July, which they updated last week. However, they have yet to score any Democratic support.

The Democrats’ framework calls for the Commodity Futures Trading Commission (CFTC) to have exclusive jurisdiction over non-security crypto markets. It also suggests regulators should issue guidance about how longstanding securities laws apply to digital assets.

This underscores the main motivation for the bill, which aims to provide clarity on when the CFTC oversees crypto markets, versus the Securities and Exchange Commission (SEC).

“[Q]uestions about digital assets’ place in the U.S. regulatory framework have hobbled both innovation and consumer protection,” the senators wrote Tuesday. “New businesses confront uncertainty about where their products fit in our regulatory system, and the growth of digital assets has highlighted gaps in the existing financial rulebook.”

Axios reported that bipartisan support on the crypto bill may be hard to come by:

Leading Senate Republicans circulated a beefed up discussion draft Friday night of a crypto trading regulatory bill, but the majority is still unclear what concessions will be needed to secure key Democratic votes, according to a Republican aide.

The Senate’s market structure bill needs support from at least seven Democrats to move, even with unanimous support from Republicans.
Senate Banking Committee chair Tim Scott (R-S.C.) said at a crypto conference in August that up to 18 Democrats could be open to voting for the bill, though he acknowledged that some party opposition “is a real force to overcome.”

The first discussion draft on the Senate bill circulated in July ran to only 35 pages. This new version — which Axios obtained but hasn’t yet been put out — runs to 182 pages and leaves much less to the discretion of regulators.

That moves it closer to the spirit of the House version of the bill which passed in July.

While 78 Democrats in the House voted “yes” to that bill, it was always known that the legislation faced a tougher road in the Senate — where some Democrats have wanted the bill to specifically address President Trump and his family’s investments in crypto.

As of Monday afternoon, none had responded with specific areas of policy priorities for market structure.
The Republican aide, however, noted several areas of interest from Democrats.

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