Nazia Saeed
- 12 Senate Democrats call for bipartisan collaboration on digital asset market structure legislation.
- Proposed protections include measures against illicit finance, market abuse, and gaps in spot markets.
- Republicans plan to vote on the Responsible Financial Innovation Act in the Senate Banking Committee by late September, aiming for full passage by 2026.
A group of Democratic senators in the US Congress has expressed their willingness to collaborate with Republicans on legislation aimed at establishing a digital asset market structure. The statement from 12 Democratic lawmakers comes ahead of an expected vote on a crypto market structure bill backed by Republican leadership.
The senators emphasized the importance of a bipartisan authorship process and urged Republicans to allow for collaboration in shaping legislation that addresses the growing digital asset ecosystem.
Democrats propose protections against illicit finance and market abuse
The Democratic framework outlines seven key pillars, including measures to combat illicit finance, close gaps in the spot market for digital assets not classified as securities, and prevent corruption and abuse in the industry.
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Notably, Massachusetts Senator Elizabeth Warren did not sign the statement, expressing caution over bills that may be heavily influenced by the crypto industry. She has previously stated that while regulation is necessary, she would not support legislation “written by the crypto industry.”
Republicans target market structure vote by 2026
Republicans are expected to advance their own bill, tentatively titled the Responsible Financial Innovation Act, building on the House-passed CLARITY Act. The legislation is slated for a vote in the Senate Banking Committee by the end of September, with further consideration by both the banking and agriculture committees before a potential floor vote later this year.
Industry executives, including Coinbase CEO Brian Armstrong, recently met with Republican lawmakers to discuss the path forward for crypto-related legislation, signaling ongoing engagement between regulators, lawmakers, and the crypto sector.
