Democratic staff on the Senate Banking Committee have strongly criticized a Republican draft bill aimed at reforming digital asset regulation, accusing it of creating loopholes for avoiding oversight. The bill, dubbed the ‘Responsible Financial Innovation Act of 2025,’ has sparked concerns about potential market confusion and legislative gridlock as it relates to Bitcoin and Ethereum. The memo highlights expanded exemptions and self-certification provisions that raise concerns over regulatory gaps. While Republicans argue the bill aims to streamline regulation, Democrats see it as a “superhighway” for regulatory avoidance. This clash reflects wider policy divides on fintech regulation in Congress.