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Crypto Clarity Act stalls in Senate over Trump ethics concerns
The Crypto Clarity Act, passed by the House and Senate Banking Committee, faces collapse as Democrats demand ethics restrictions affecting President Trump. A full vote remains unscheduled, people said.
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The Crypto Clarity Act, a bill setting federal rules for digital asset markets, is at risk of collapse after Senate talks hit a wall over ethics restrictions that would apply to President Trump and other officials.
The House passed the bill months ago. A Senate Banking Committee vote cleared it last quarter. A full Senate vote has not been scheduled. Recent discussions stalled as Democrats demanded stronger ethics provisions, according to people familiar with the talks. Republican resistance to applying the restrictions to the president has created a standoff.
If the bill dies, the push for comprehensive crypto market structure legislation would reset in the next Congress, likely under divided government. Industry groups have spent months lobbying for the act. The SEC and CFTC would continue their turf war over crypto oversight – a dynamic explored in a recent analysis of the CFTC's single commissioner. Market participants have already adjusted expectations for passage this year, traders said.