Crypto Market Structure: Democrats’ Latest Memo Exposes New Fault Lines in Senate Bill

Negotiations for the bipartisan Senate crypto market structure bill have become complicated as Democrats circulated a counteroffer detailing demands that expose significant fault lines. While accepting much of the Republican framework, Democrats insist on major structural changes concerning financial stability, market integrity, national security, and ethics rules targeting elected officials' involvement with crypto projects, a demand sharpened by concerns related to the Trump family. These demands explain why senior Democrats are resisting a markup next week, despite GOP assurances the bill is nearly ready. Key unresolved issues include splitting long-term oversight between the CFTC and SEC, stronger secondary-market protections, and rules against bypassing compliance via decentralization claims. Furthermore, Senator Cynthia Lummis confirmed the White House is already rejecting ethics provisions and demands for specific Democratic nominees for regulatory commissions. The urgency is heightened by the limited 2025 Senate calendar, as delays past next week push the process toward midterm election stresses and potential government funding expiration issues.

(Source：CoinDesk)