Senate Democrats Introduce Digital Asset Market Structure Plan

A group of 12 Senate Democrats have presented a detailed proposal outlining how digital asset markets should be regulated in the US. According to Cointelegraph, the group has stated that the framework is intended to form the basis of a bipartisan agreement and allow more time for lawmakers to resolve differences. Their announcement comes as Senate Republicans push ahead with their own legislation on the same topic.

The Democratic plan provides clear definitions for digital assets and specifies the roles of the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission in regulating the sector. The senators said that updated rules are necessary to protect consumers, maintain fair markets, and prevent the use of cryptocurrencies for illegal purposes such as fraud or money laundering.

Meanwhile, Republican lawmakers are advancing the Responsible Financial Innovation Act. Their timetable calls for moving the bill through the Senate Banking Committee in October and the Agriculture Committee in November, with the goal of making it law in 2026.

Senate Banking Committee Chair Tim Scott has stated that he expects support from some Democrats for the Republican bill. However, the Democrats, introducing their own proposal, stated that bipartisan laws take time to craft and should not be rushed.

They also said they are open to working with Republican colleagues to create a single approach that sets strong, clear, and enforceable rules for the digital asset market. The debate over these competing proposals will help define how cryptocurrencies and related technologies are governed in the US for years to come.

Vietnam Introduces 5-Year Cryptocurrency Pilot With Tight Controls

Vietnam has started a five-year pilot to control cryptocurrency trading and ancillary activities. The program came into effect on September 9, 2025, after being approved by the government. It covers the issuance, trading, and payment of crypto assets within the country.

Participation is limited to Vietnamese companies registered as limited liability or joint stock firms. From now on, all crypto transactions must be conducted in Vietnamese dong. Real physical assets must back any crypto asset issued. Using fiat currencies or securities as backing is prohibited.

Only licensed crypto asset service providers can operate under the program, stated Cointelegraph. These providers must be approved by the Ministry of Finance. They may offer crypto assets only to foreign investors.

Service providers must have at least 10 trillion VND in capital, equal to about $379 million. At least 65 per cent of this capital must come from institutional investors, such as banks or financial companies. Foreign ownership in these businesses is capped at 49 per cent.

Participation is limited to Vietnamese companies registered as limited liability or joint stock firms. From now on, all crypto transactions must be conducted in Vietnamese dong. Real physical assets must back any crypto asset issued. Using fiat currencies or securities as backing is prohibited.

Only licensed crypto asset service providers can operate under the program, stated Cointelegraph. These providers must be approved by the Ministry of Finance. They may offer crypto assets only to foreign investors.

Service providers must have at least 10 trillion VND in capital, equal to about $379 million. At least 65 per cent of this capital must come from institutional investors, such as banks or financial companies. Foreign ownership in these businesses is capped at 49 per cent.

DC Attorney General Sues Athena Bitcoin Over Hidden Fees

The District of Columbia’s attorney general, Brian Schwalb, is suing crypto ATM operator Athena Bitcoin. He claims the company charged undisclosed fees and did not put in place enough safeguards against scams and fraud. The lawsuit says that 93 per cent of deposits at Athena’s DC machines over the first five months were directly tied to scams. The machines also have a no-refund policy that prevents victims from recovering fees or lost funds.

Schwalb’s office alleges Athena charged consumers fees of up to 26 per cent per transaction, without making that clear at any point. The firm referred to a “Transaction Service Margin” in its terms of service, but never used the word “fee.” The lawsuit states that Athena “pocketed hundreds of thousands of dollars in undisclosed fees” from scam victims, many of whom were vulnerable or elderly. The median age of victims was 71, and the median loss per transaction was $8,000. In one case, a DC resident lost $98,000 via an Athena kiosk.

The attorney general also alleges that Athena allowed transactions linked to fraud to proceed, calling that “ineffective oversight” and saying it created an “unchecked pipeline” for international scam transactions. He added that Athena was aware its machines were used mainly by scammers, yet chose to ignore this so it could keep collecting hidden transaction fees.

In 2024, the FBI received nearly 11,000 complaints from crypto ATM users, with reported losses over $246 million. Several states have enacted transaction limits in response.