12 US Senators Unveil Framework to Reshape Digital Asset Regulation

CN
11 hours ago

U.S. lawmakers have intensified their focus on the regulation of digital assets as a group of 12 Democratic senators released a comprehensive framework to guide future market structure legislation on Sept. 9. The effort, led by senators Ruben Gallego, Mark Warner, Kirsten Gillibrand, Cory Booker, Catherine Cortez Masto, Ben Ray Luján, John Hickenlooper, Raphael Warnock, Adam Schiff, Andy Kim, Lisa Blunt Rochester, and Angela Alsobrooks, pointed to the size of the industry as a driving force. They stated:

The digital asset sector has grown to a $4 trillion global market. We owe it to the millions of Americans who participate in this market to create clear rules of the road that protect consumers and safeguard our markets.

“We also must ensure that digital assets are not used to finance illicit activities or to line the pockets of politicians and their families,” they added. In presenting the document, they explained its broader goal: “Today, we’re releasing a framework for a market structure bill that would regulate digital asset markets in the U.S., ensure responsible innovation, and create a safe and level playing field for all market participants. The framework is a substantive road map to guide what we hope will be robust and fruitful bipartisan negotiations and ultimately, a bipartisan product.”

The senators outlined seven guiding principles for legislation, ranging from closing gaps in the spot market for non-security tokens to incorporating issuers and platforms into regulatory frameworks. Other pillars include clarifying the legal status of digital assets, addressing illicit finance, preventing corruption and abuse, and ensuring effective oversight by federal regulators.

The framework expands on these principles with specific policy measures. It calls for granting the Commodity Futures Trading Commission (CFTC) exclusive jurisdiction over spot markets for non-security digital assets, requiring robust disclosures from issuers and platforms, and ensuring the U.S. Securities and Exchange Commission (SEC) has the authority to regulate digital assets classified as securities. Additional provisions mandate anti-money laundering and counter-terrorism compliance for platforms, impose restrictions on elected officials profiting from digital asset ventures, and provide new funding and staffing resources for the SEC, CFTC, and Treasury Department.

Republican senator Cynthia Lummis of Wyoming signaled openness to collaboration on social media platform X:

I want to thank my colleagues across the aisle for their constructive digital asset market structure framework. Meaningful legislation takes intentional collaboration & discussion. This is a strong start, and I look forward to working together to secure America’s financial future.

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