Senate Democrats Call Republican Crypto Draft "Regulatory Evasion Highway"

The Democratic staffer of the US Senate Banking Committee has criticized the Republican version of the draft cryptocurrency legislation for providing "a highway to evade regulation" for traditional assets, fearing that non-crypto assets such as stocks could circumvent Securities Exchange Commission (SEC) regulation just by tokenizing them. Democrats pointed out that the definition of "subordinate assets" in the draft is not limited to cryptocurrencies and could allow companies to sell assets without investor protection, increasing market volatility and fraud risk. Previously, the House of Representatives has passed the Digital Asset Market Transparency Act, establishing the division of labor between the SEC and the Commodity Futures Trading Commission (CFTC) in the field of digital assets. Democrats also expressed concerns about the crypto business of President Trump's family, saying that the draft does not limit its impact.