Scott blames Warren's team as CLARITY Act hits Sept. 15 test

Crypto exchanges, brokers, and dealers covered by the legislation would have to register under new federal rules. The bill also addresses customer asset protection, anti-money laundering requirements, and disclosures for digital asset businesses.

Developers of certain non-custodial software could receive protection from being treated as money transmitters solely because they publish or maintain software. Law enforcement groups objected to earlier language, arguing it could limit investigations involving decentralized finance.

Several organizations changed their positions after lawmakers revised the provisions. The National Fraternal Order of Police, representing more than 382,000 members, endorsed the updated language in July after concluding it preserved authorities used in digital asset investigations.

A separate coalition of police chiefs also backed the revised proposal. Other prosecutors and enforcement organizations continued seeking changes, making the developer provisions one of several issues senators must manage before securing enough floor votes.

Lawmakers released a 616-page merged draft in late July, combining work from the Banking and Agriculture committees. Each committee oversees different parts of the proposed regulatory structure because the SEC falls under Banking jurisdiction and the CFTC falls under Agriculture jurisdiction.

Restrictions involving elected officials and their crypto interests remain among the hardest issues to settle. Democrats have sought rules addressing digital asset ventures connected to the president, senior officials, and their families. Their concerns include Trump-linked crypto businesses and whether a sitting president should be allowed to issue, promote, or profit from digital assets while influencing federal policy.

Republican Sen. Thom Tillis has worked on a bipartisan ethics proposal intended to address some objections. Industry executives have pointed to negotiations with the White House as a possible route to an agreement. Lawmakers had not released a final compromise as of Aug. 20.

Stablecoin rewards have created another divide. Banks have pushed for restrictions preventing crypto platforms from paying yield or rewards on payment stablecoins, warning such products could draw deposits away from regulated institutions.

Crypto companies argue a sweeping restriction could limit competition and extend beyond the rules Congress adopted for stablecoin issuers. Negotiators have not publicly confirmed final language that satisfies both groups.

Financial-crime controls and the treatment of decentralized protocols also remain under discussion. Warren and aligned Democrats have pressed for stronger measures covering illicit finance and national security. Crypto advocates have warned against applying obligations designed for financial intermediaries to software developers who do not control customer funds.

A July report on the Senate's delayed vote found that disputes over ethics, DeFi protections, and stablecoin rewards persisted even after major law enforcement groups supported revised provisions.

Scott presented the dispute in Wyoming as a choice between passing federal rules and allowing crypto businesses to leave the country. His accusation against Warren went further than earlier Republican appeals for bipartisan cooperation.

Warren has argued that digital asset legislation must contain sufficient consumer protections and prevent public officials from using their positions for personal financial gain. Democrats aligned with her have also questioned whether current enforcement provisions would adequately cover money laundering and national security risks.

Not every Democrat opposing an immediate vote has rejected market structure legislation. Gallego said on Aug. 19 that rushing the process could weaken the chance of reaching a bipartisan deal. He also said the White House had not supplied detailed feedback on bipartisan ethics language sent by Senate negotiators. Along with the ethics dispute, he identified stablecoin rewards and unresolved Agriculture Committee provisions as matters requiring further work before the legislation advances.