A group of Senate Democrats has presented a structured framework aimed at defining how cryptocurrencies fit within the current regulatory landscape in the United States. This includes delineation of authority between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

The lawmakers have identified seven essential pillars, calling for regulation that protects consumers, clarifies regulatory jurisdictions, blocks illicit finance, and ensures effective market regulations. Senators involved include: Ruben Gallego, Mark Warner, Kirsten Gillibrand, Cory Booker, Catherine Cortez Masto, Ben Ray Lujan, John Hickenlooper, Raphael Warnock, Adam Schiff, Andy Kim, Lisa Blunt Rochester, and Angela Alsobrooks.

“We owe it to the millions of Americans involved in this market to establish clear rules that guard consumers and protect our financial systems,” they stated.

The existing regulatory framework has hindered innovation and consumer protection, necessitating a fresh approach to incorporate digital assets that are not categorized as securities. The document urges that all digital asset platforms must register as financial institutions under the Financial Crimes Enforcement Network (FinCEN).