Proposed Crypto Framework Aims to Close Regulatory Gaps in $4T Market
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 Editor-in-Chief of Coindoo and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
