The two parties in the US Senate have divergent positions on cryptocurrency regulation

According to Bloomberg, a key U.S. Senate subcommittee is debating proposed regulation of digital assets, with Republicans advocating for moderate regulation and Democrats warning of potential loopholes and conflicts of interest. On Wednesday, the Senate Banking Committee held a hearing to strive for the completion of legislation on cryptocurrency market structure before the September 30th subcommittee deadline, and the House of Representatives will also review related bills next week. Chairman Tim Scott stated that legislation should clearly define securities tokens and safeguard measures against illegal financial activities. Democratic Senator Raphael Warnock criticized the proposal for failing to address conflicts of interest in the executive branch. At the hearing, former chairman of the Commodity Futures Trading Commission, Timothy Massad, warned that the current legislation granting too broad exemptions to decentralized cryptocurrency companies could lead to the outflow of regulatory activities. Democrats are also concerned that cryptocurrency companies are using "decentralization" to evade registration. Republican senators Cynthia Lummis, Thom Tillis, and others released market structure principles last month, which are generally consistent with the CLARITY Act. Bill Hagerty stated that he is not concerned about losing bipartisan support and predicts that Democrats who support stablecoin legislation will pragmatically push forward.