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US Senate Democrats Offer Competing Framework for Crypto Market Structure
Democrats call for bipartisan cooperation as Republicans push to fast-track a market structure bill.
A Parallel Democratic Framework
A group of 12 Democratic senators has unveiled its own framework to guide crypto market structure legislation, stressing the need for a deliberate, bipartisan process. The timing comes as Republicans on the Senate banking committee prepare to advance their bill this fall.
Like the GOP’s draft released Sept. 5, the Democrats’ version calls for regulatory clarity and clearer rules for how the SEC and CFTC would oversee digital assets.
“We owe it to the millions of Americans who participate in this market to create clear rules of the road that protect consumers and safeguard our markets,” the senators wrote. “We also must ensure that digital assets are not used to finance illicit activities or to line the pockets of politicians and their families.”
Clarity vs. Politics
The Democratic framework lays out seven key pillars, including protections against illicit finance and closing regulatory gaps in the spot market. But it also openly criticizes President Donald Trump, accusing him of destabilizing regulatory agencies.
“Designing and enforcing a digital asset framework will require significant additional resources for the SEC, CFTC, and Treasury Department,” the proposal states. “In addition, President Trump has fired countless Democratic commissioners from independent regulatory agencies and shown little interest in nominating new officials.”
At present, the CFTC has just one commissioner — Acting Chair Caroline Pham — following widespread departures. Trump has nominated Brian Quintenz to replace Pham as chair, but the other four commission seats remain vacant.
Path to Passage by 2026?
Following the passage of the GENIUS Act on payment stablecoins in July, Congress is shifting focus to broader market structure rules. Republicans plan to move their bill — the Responsible Financial Innovation Act — through the banking committee in October, the agriculture committee in November, and into law by 2026.
Meanwhile, the House already passed its version, the CLARITY Act, with bipartisan support. But Democrats remain split, especially after their framework recommended new restrictions on lawmakers themselves.
Specifically, the proposal calls for prohibiting elected officials and their families from “issuing, endorsing, or profiting from digital assets while in office” and tightening disclosure requirements.
Trump’s Crypto Ties Add Friction
Democrats argue that Trump’s personal and family-linked ventures in crypto — including World Liberty Financial, a Trump memecoin, and a family-backed mining venture — complicate efforts to build consensus. Lawmakers such as Senator Elizabeth Warren have repeatedly criticized Trump’s crypto involvement as a conflict of interest.
Despite these tensions, both parties agree that establishing clear, stable rules for the digital asset market will be critical to protecting investors and enabling growth in the years ahead. Whether the two frameworks can be reconciled remains to be seen.
Why This Matters
The competing proposals highlight the political stakes in building the first comprehensive U.S. crypto market framework. With the GENIUS Act already signed into law, momentum is shifting toward legislation that defines the regulatory perimeter for exchanges, tokens, and digital asset issuers. A bipartisan solution will be essential for lasting stability.
@ Newshounds News™
Source: Cointelegraph
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U.S. Congress Demands 90-Day Report on Strategic Bitcoin Reserve Security
Lawmakers push Treasury to assess feasibility, cybersecurity, and national security of a federal Bitcoin reserve.
Building a Digital Fort Knox
The U.S. Congress is moving forward with legislation that would require the Treasury Department to deliver a comprehensive report on the Strategic Bitcoin Reserve and broader U.S. Digital Asset Stockpile within 90 days of enactment.
The measure, filed on September 5 by Representative David Joyce (R-OH) as part of the Financial Services and General Government Appropriations Act for FY2026 (H.R. 5166), directs the Treasury to assess the feasibility, security, and accounting of a federal digital asset reserve built primarily from seized cryptocurrencies.
The bill has already cleared the House Appropriations Committee, been assigned Union Calendar No. 193, and is awaiting a floor vote. Its ultimate passage, however, will hinge on broader budget negotiations later this year.
U.S. Treasury Report to Weigh Feasibility of a Bitcoin Reserve
Currently, the federal government holds an estimated 198,000–207,000 BTC (roughly $17–20 billion), mostly acquired through law enforcement actions against darknet markets, fraud schemes, and cybercrime. Historically, these holdings were sold off at public auctions, a practice now shifting toward strategic retention.
Under the new framework, however, Treasury would need to assess the practicability of establishing a strategic Bitcoin reserve and digital asset stockpile, including potential legal or operational barriers.
The bill also calls for clarity on how these assets would be valued on the federal balance sheet, how custody would be managed, and whether outside contractors would be used for safekeeping.
Notably, the report must analyze how consolidating seized Bitcoin and other assets into a reserve would affect the Treasury Forfeiture Fund, which currently receives proceeds from asset seizures.
National Security and Cyber Defense
National security looms large in the proposal. The legislation directs Treasury and the National Security Agency to jointly prepare a classified security assessment detailing how to protect federal digital asset reserves from cyberattacks, insider threats, and foreign adversaries.
It also requires the department to outline its legal authority, cybersecurity measures, and interagency protocols for moving digital assets securely.
The timing reflects a broader political push. In March, President Donald Trump signed an executive order establishing a framework for a national Bitcoin reserve, explicitly stating that the government would not buy coins on the open market but instead rely on confiscations.
Treasury Secretary Scott Bessent has since reinforced the message, arguing that Bitcoin can serve as a hedge and an innovation signal, while taxpayers benefit from retaining high-value assets rather than selling them off prematurely.
Strategic Pragmatism, Not a CBDC
Supporters of the bill frame it as fiscal pragmatism and geopolitical strategy. Representative Joyce said the measure ensures that the government “remains fiscally responsible, leverages new technology, and is focused on national security.”
The legislation also includes a prohibition against funding a U.S. central bank digital currency, showing Republican resistance to a government-backed CBDC.
Counterweight to BRICS Digital Currency Push
The anti-CBDC clause also stands out against the backdrop of BRICS nations advancing digital currency initiatives. China has been rapidly rolling out the digital yuan, while Russia, Brazil, and South Africa are exploring their own central bank digital currencies.
By explicitly rejecting a U.S. CBDC, Congress is signaling that America will not follow the same path as its geopolitical rivals. Instead, Washington appears to be betting on Bitcoin and decentralized assets as a strategic hedge — a move that could create a stark policy divide between Western and BRICS financial architectures.
Global Momentum for National Bitcoin Reserves
Adding urgency to the need for proper reserve classification and reporting, some U.S. states advance their own measures. Particularly, Texas has already established a state-level reserve, while other states, including New Hampshire and Arizona, have passed digital asset investment laws.
Notably, the United States is not alone in exploring crypto reserves. This week, El Salvador advanced its Bitcoin accumulation with a 21 BTC purchase to celebrate Bitcoin Day despite the IMF directory. Likewise, Kazakhstan’s president, Kassym-Jomart Tokayev, recently proposed a state crypto fund to accumulate digital assets.
In the Philippines, lawmakers have considered a proposal to establish a reserve of 10,000 Bitcoin, which would make it the first in Southeast Asia to adopt such a measure. Similarly, Brazil’s Congress is considering Bill 4501/24, a proposal to create a $19 billion Bitcoin reserve, known as RESBit, under the joint oversight of the Central Bank and Finance Ministry.
Notably, Bitbo data reveals that governments worldwide hold more than 517,000 Bitcoin, equal to 2.46% of the total supply. Holdings include nearly 194,000 Bitcoin in China, over 11,000 in Bhutan, and around 6,000 in El Salvador.
Why This Matters
The U.S. move to classify, secure, and potentially formalize its Bitcoin stockpile comes at a turning point in global finance. As BRICS nations accelerate gold buying and digital currency pilots, Washington is exploring a different hedge: strategic Bitcoin reserves. Whether this strengthens America’s financial resilience or sparks new geopolitical fault lines will be closely watched worldwide.
@ Newshounds News™
Source: CryptoNews
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Experts Decipher If Ripple’s XRP Lawsuit Saved Crypto World Just in Time
Rate cuts, Wall Street adoption, and Ripple’s courtroom victory may have converged at a critical moment for crypto.
Rate Cuts Spark New Investor Momentum
The U.S. Federal Reserve is expected to cut interest rates after last week’s weak jobs data, a move already sending ripples through global markets. Gold surged to a record $3,600, and analysts say crypto could be next in line.
“If rates fall, more money flows into the system,” said James Rule on the Paul Barron Podcast. “That cash won’t just stay in banks. People will look to gold, metals, and crypto. We’re already seeing new, first-time users flooding in.”
For XRP in particular, lower borrowing costs may fuel fresh retail demand. Investors increasingly view the asset as both an inflation hedge and a cross-border payments tool.
Ripple’s Lawsuit Legacy
XRP’s current position cannot be separated from Ripple’s landmark legal battle with the U.S. Securities and Exchange Commission (SEC). The agency alleged that XRP sales were unregistered securities — a case that galvanized the entire crypto community.
Attorney John Deaton led thousands of XRP holders in challenging the SEC’s claims, turning the case into a referendum on crypto’s future in the U.S.
“We all fought that fight,” Rule reflected. “And it wasn’t just about Ripple. It set the tone for all of crypto.”
The outcome, widely seen as a win for Ripple, provided legal clarity and boosted confidence among both retail investors and institutions.
Wall Street, Nasdaq, and Institutional Adoption
Signs of mainstream embrace are growing rapidly:
- Nasdaq has floated plans for tokenized securities.
- Stripe is exploring its own blockchain infrastructure.
- Ripple’s Swell conference is attracting major institutional speakers, a signal of rising corporate interest.
Together, these developments mark a turning point. “From Capitol Hill to Wall Street, the groundwork was laid by Ripple’s fight,” analysts noted.
Why This Matters
Ripple’s victory against the SEC helped clear a path for broader digital asset adoption at a time when monetary policy is loosening. With Wall Street now leaning into blockchain and institutions showing up at Ripple’s events, XRP’s dual legacy — as both a payments utility and a legal precedent — may prove decisive in shaping crypto’s future.
@ Newshounds News™
Source: Coinpedia
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