US Senate Democrats Criticize Republican Crypto Bill as a "Regulatory Evasion Expressway"

According to a report by Jinse Finance, Democratic staff members of the U.S. Senate Banking Committee have criticized the Republican version of the cryptocurrency legislation draft, arguing that it provides a “regulatory escape route” for traditional assets. They are concerned that non-crypto assets such as stocks could bypass oversight by the U.S. Securities and Exchange Commission (SEC) simply through tokenization. The Democrats pointed out that the draft’s definition of “ancillary assets” is not limited to cryptocurrencies, which could allow companies to sell assets without adequate investor protection, thereby increasing market volatility and the risk of fraud. Previously, the House of Representatives passed the Digital Asset Market Structure Bill, which established the division of responsibilities between the SEC and the Commodity Futures Trading Commission (CFTC) in the digital asset sector. The Democrats also expressed concerns about the Trump family’s involvement in crypto businesses, stating that the draft does not limit their influence.