A dozen Senate Democrats unveiled a comprehensive cryptocurrency regulatory framework Tuesday, directly challenging President Donald Trump‘s family business ties to digital assets.

Democratic Senators Propose CFTC Jurisdiction Expansion

The proposal, led by Sens. Ruben Gallego (D-Ariz.), Mark Warner (D-Va.) and Kirsten Gillibrand (D-N.Y.), seeks to grant exclusive jurisdiction over non-security crypto markets to the Commodity Futures Trading Commission, reported The Hill.

“Questions about digital assets’ place in the U.S. regulatory framework have hobbled both innovation and consumer protection,” the senators wrote, emphasizing clarity between CFTC and Securities and Exchange Commission oversight roles.

Trump Family Conflicts Draw Scrutiny

The Democratic framework specifically targets elected officials and their family members, proposing to block them from “issuing, endorsing or profiting from digital assets” while establishing mandatory reporting requirements for crypto holdings. This provision directly addresses concerns over the Trump family’s expanding cryptocurrency ventures.

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Market Structure Legislation Faces Bipartisan Divide

Senate Republicans released their own discussion draft in July, updated last week, but have secured no Democratic support. The Democrats’ proposal requires commissioners from both parties at SEC and CFTC to establish quorums for digital asset rulemakings, citing Trump’s recent firing of Democratic officials at independent agencies.

“Only a bipartisan regulatory process will produce durable, balanced rules that provide long-term stability and legitimacy for digital asset markets,” the Democratic senators stated.

Trump Crypto Ventures Face Volatility

American Bitcoin currently holds 2,443 Bitcoin, worth $273 million, differentiating itself from treasury companies like Strategy Inc. (NASDAQ:MSTR) through active mining operations.

The broader crypto market structure legislation faces a more complex path than July’s GENIUS Act stablecoin framework, which passed with significant bipartisan support, according to the report.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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