The US Senate is moving forward with a new crypto market structure bill, but tensions are rising over how the law is being formed.
Sen. Elizabeth Warren (D-MA) raised insightful concerns about the lack of transparency in the crypto bill process, accusing Republicans of publishing a 182-page draft without consulting Democrats or revealing industry opinions.
Warren argued that such an approach threatens bipartisan cooperation, and warned that lobbyist-led laws risk unfair benefits for the crypto industry.
“Instead of working with us, Republicans have produced partisan drafts that reflect secret feedback from the industry,” Warren said, calling for more openness and collaboration.
BTC's price trends to the upside on the daily chart. Source: BTCUSD on Tradingivew
Democrats release their own framework
In response, Senate Democrats have released a six-page framework that outlines priorities for crypto regulations. The document highlights seven key pillars, including consumer protection, prevention of corruption, clarification of regulatory jurisdiction between the SEC and the CFTC, and ensuring fair monitoring of Defi.
Though far less detailed than the Republican draft, the democratic framework demonstrates its intention to participate in the formation of comprehensive law.
Democrats with custody, including Senators Kirsten Gillibrand, Cory Booker and Mark Warner, have approved the framework, highlighting the need for rules that balance innovation with investor protection measures.
However, the detailed 182-page proposal and wide framework disparities could put Democrats at structural disadvantage in negotiations, allowing Republicans to set terms for debate.
What to expect from the cryptography bill
The bill itself seeks to clarify how crypto assets fit the US regulatory regime, with provisions that exempt staking, airdrop and decentralized infrastructure projects from the securities law under certain conditions.
However, critics have questioned whether these exemptions could undermine consumer protections while supporting industry interests. Warren, one of the Senate’s most vocal code skeptics, argues that bipartisan law should be rooted in transparency and accountability rather than industry influence.
The White House is also pushing lawmakers to move quickly, seeking a final draft where new crypto advisor Patrick Whitt can attract bipartisan support. However, questions about partisan friction, lobbying concerns and appointments of regulators remain a major hurdle.
With both parties taking over their positions, the coming weeks will allow us to determine whether the US will move towards a unified regulatory framework or whether political divisions will progress again.
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