Democrats announce cryptocurrency rules response plan: CFTC, AML and Trump are closely linked

A panel of 12 U.S. Senate Democrats proposed a regulatory framework covering the seven pillars of digital assets, aiming to strengthen investor protection, increase regulatory transparency, and address ethical issues related to politicians. The proposal gives the U.S. Commodity Futures Trading Commission (CFTC) new powers over the spot market of non-securities tokens and establishes a process for SEC jurisdiction recognition. The framework imposes disclosure requirements on token issuers, regulates cryptocurrency exchanges and custodians, and requires them to comply with anti-money laundering regulations. The framework also proposes a ban on stablecoin income payments and introduces ethical rules that prohibit officials from profiting from cryptocurrency projects. Differences with the Republican Party on DeFi regulation and enforcement timelines could pose a challenge to bipartisan negotiations.