Senate Democrats, led by Elizabeth Warren and Chris Van Hollen, have expressed concerns that new SEC crypto guidance could weaken investor protections by exempting major parts of the crypto market from securities laws. The senators criticized SEC Chair Paul Atkins for potentially allowing crypto firms to bypass long-standing regulations, which could impact oversight of activities like mining, staking, and airdrops. The SEC's interpretive release categorizes crypto assets into digital commodities, collectibles, tools, stablecoins, and securities, with only the latter two potentially subject to securities laws. Warren and Van Hollen argue this framework could lead to reduced regulatory oversight and investor protections, particularly in secondary transactions. They also highlighted potential exemptions that could enable crypto companies to raise significant funds without SEC registration. A response from Atkins is expected by May 8, 2026, as Congress considers related legislation.