Enforcement Clash Threatens Crypto Bill's Senate Path

Senate Democrats are digging in on a key demand in the crypto market structure bill: giving state attorneys general the power to enforce ethics restrictions on federal officials, according to people familiar with a Tuesday industry briefing from a White House official.

The dispute centers on who would police the ban on government officials with significant crypto ties. Democrats want state attorneys general to have that authority. The White House and Senate Republicans are insisting the U.S. attorney general should be the top enforcement official, the people said.

The Digital Asset Market Clarity Act's fate now rests on a compromise over that ethics section. If the two sides can settle it, the rest of the bill is expected to move forward. Some loose ends remain, including how developers are treated under the bill's illicit-finance rules.

August 7, the Senate's last day before summer recess, is effectively the deadline for finishing the bill this year. Crypto industry insiders expect the legislation could hit the floor as soon as next week, matching what Senate Majority Leader John Thune had signaled. A final vote could take several days.

The White House official told the briefing that President Trump had agreed to "the most comprehensive and wide-ranging ethics provision in history," according to CoinDesk. The actual language hasn't been shared with Democrats, people familiar said, and it's still unclear if they have seen it. The administration argued it had "bent over backward" to satisfy Democrats, suggesting the party would stall the bill if it fails.