Democratic lawmakers have unveiled a sweeping plan to rewrite U.S. digital asset regulation, aiming to restore confidence in a market worth nearly $4 trillion.
The proposal seeks to end years of uncertainty by dividing responsibilities between the CFTC and SEC while adding new safeguards for consumers.
The draft framework would hand the CFTC control over spot trading of cryptocurrencies that aren’t securities, while the SEC would adapt its disclosure regime for tokenized securities. Both agencies would receive more funding and authority to police custody, leverage, and conflicts of interest.
Beyond market structure, the plan takes direct aim at misconduct. It proposes a ban on elected officials and their families issuing or profiting from tokens while in office, a provision linked to concerns over President Donald Trump’s ties to crypto ventures. Full disclosure of digital asset holdings would also become mandatory.
Stablecoins and DeFi are another priority. The bill would enforce strict anti–money laundering and sanctions compliance on intermediaries, extend oversight to foreign platforms serving U.S. users, and preserve earlier limits that bar stablecoin issuers from offering yield products. DeFi protocols, meanwhile, would be examined for vulnerabilities that could enable illicit finance.
Lawmakers say the reforms are designed not only to protect investors but also to position the U.S. as a global leader in digital innovation, with bipartisan oversight baked into how regulators craft and enforce the rules.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/proposed-crypto-framework-aims-to-close-regulatory-gaps-in-4t-market/