U.S. Democrats unveil crypto regulatory blueprint targeting Trump…"Restore market trust"

U.S. Democrats unveiled a new regulatory framework to curb President Donald Trump's involvement in crypto assets and restore confidence in the $4 trillion market. According to CryptoSlate on the 10th (local time), Democratic lawmakers released a legislative blueprint that would grant the Commodity Futures Trading Commission (CFTC) full authority over spot markets for non-security digital assets and fold security tokens into the Securities and Exchange Commission (SEC) system, forming a dual regulatory regime.

The new framework set out seven key priorities, including clearer token classification, applying issuance regulations, requiring trading platform registration, and blocking illicit finance. Registration and enforcement powers for the CFTC would be expanded, while the SEC would integrate tokenized securities into existing disclosure regimes. Both agencies would also see strengthened regulatory authority over custody, margin, and conflicts of interest.

A provision to prevent public officials from abusing crypto assets was included. Elected officials, including the president, and their families would be prohibited from issuing tokens or profiting from them while in office and would have to disclose all holdings. This is interpreted as a measure taken in light of allegations of President Trump's involvement in crypto projects.

Decentralized finance (DeFi) and stablecoins would also fall under supervision. The blueprint specifies compliance reviews of decentralized protocols, a ban on interest-bearing products from stablecoin issuers, and anti-money-laundering and sanctions compliance obligations for all intermediaries, including foreign operators. It also requires the SEC and CFTC to maintain a bipartisan decision-making structure and to quickly staff up crypto asset specialists.

Democratic lawmakers called the blueprint "a turning point that restores trust, prevents abuse, and ensures the U.S. leads next-generation financial innovation."