The Senate Agriculture Committee's draft on the crypto market structure sparks controversy between Democrats and Republicans

The recent draft of the cryptocurrency market structure submitted by the U.S. Senate Agriculture Committee has become a new focal point in partisan battles. Democratic lawmakers, who were not included in previous discussions, have begun to propose amendments aimed at integrating their core policy positions into this Republican-led legislative text.

Core Amendments Sought by Democratic Lawmakers

The Democratic amendments cover several key policy objectives. Senator Richard Durbin proposed banning financial assistance to digital asset issuers, an important measure to prevent systemic financial risks. Meanwhile, Senate Agriculture Committee Democrat leader Amy Klobuchar demanded that the Commodity Futures Trading Commission (CFTC) complete its full commissioner team before the new digital asset regulatory framework takes effect — a more binding requirement than the current draft proposal.

Senator Michael Bennet’s anti-corruption proposal is more aggressive, banning senior government officials from deriving any economic benefits from the cryptocurrency industry. This move directly addresses concerns over the influence of business interests on government.

Republican Additional Proposals and Regulatory Directions

Republican lawmakers are not sitting idly. Senator Tommy Tuberville proposed an amendment focused on national security, prohibiting operations of crypto platforms linked to U.S. adversaries. This reflects the GOP’s focus on scrutinizing the backgrounds of market participants.

White House advisor Patrick Witt publicly defended stablecoin yields, emphasizing “benefits to consumers when options exist,” indicating that the government is weighing the balance between strict regulation and market innovation.

Challenges in Advancing the Digital Asset Market Clarity Act

The formal name of this draft is the “Digital Asset Market Clarity Act,” and its subsequent process still faces multiple challenges. The Senate Agriculture Committee has planned to initiate formal review of the draft, considering amendments item by item. However, many industry insiders expect that adverse weather conditions and other practical factors may delay the meeting.

A bigger challenge is that the Agriculture Committee is not the only gatekeeper. The Senate Banking Committee must also pass its own version of the bill, which has historically been contentious on cryptocurrency regulation issues and previously shelved reform attempts due to heated debates. Only after both committees approve can the legislation be submitted for a full Senate vote.

International Cryptocurrency Regulatory Frameworks: The Russian Case

Contrasting with U.S. partisan disputes, Russia is actively advancing a systematic regulatory plan for cryptocurrencies. The country aims to establish a comprehensive market regulation framework by July 1, 2027, signaling a shift from opposition to orderly management of digital assets by major nations.

Russia’s framework allows qualified and non-qualified investors to participate in crypto trading under different rules. Qualified investors must undergo mandatory risk assessments but face no upper limits on most transactions; non-qualified investors face more restrictions. The Central Bank of Russia plans to approve Bitcoin and Ethereum as mainstream trading assets, while banning privacy coins like Monero and Zcash, and imposing penalties comparable to those for illegal banking activities for illicit crypto operations.

Web3 Ecosystem Practice: Pudgy Penguins’ Market Insights

Amid ongoing legislative improvements, new business explorations are emerging within the crypto ecosystem. Pudgy Penguins has become one of the most representative NFT-native brands in this cycle, demonstrating a shift from speculative “digital luxury goods” to a diversified consumer IP platform.

The project’s core strategy is to first attract users through mainstream channels (toys, retail collaborations, viral media), then bring them into the Web3 ecosystem via gaming, NFTs, and the PENGU token. Its ecosystem layout includes physical-digital hybrid products (over $13 million in retail sales, more than 1 million units sold), gaming experiences (Pudgy Party app downloaded over 500,000 times in two weeks), and widely distributed tokens (airdropped to over 60 million wallets).

Although the market currently prices Pudgy higher relative to traditional IP peers, its continued success depends on execution in retail expansion, increased game adoption, and deeper token utility. This case highlights that the maturity of the crypto market depends not only on regulatory frameworks but also on the operational capabilities of ecosystem participants and the expansion of user bases.

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