Senate Crypto Bill Still in Flux as Ethics, AML Fights Drag On

Senator Elizabeth Warren criticized the draft. She said it leaves loopholes that could shield improper conduct. A group of Democratic senators said the legislation still needs stronger consumer protection, ethics, market integrity, and anti-money laundering safeguards. For any crypto exchange expecting clear rules soon, the language is a risk – the bill could change materially before a floor vote.

The bill also tightens anti-money laundering rules. It expands Bank Secrecy Act compliance, adds sanctions requirements, and includes protections for decentralized finance platforms. New provisions target crypto ATM fraud and create a safe harbor that lets platforms freeze suspicious funds while cooperating with law enforcement.

Another provision encourages bipartisan representation at the Securities and Exchange Commission and Commodity Futures Trading Commission. It recommends that at least two commissioners at each agency be nominated in consultation with the Senate minority party. The CFTC currently has one commissioner, a structural issue that has drawn attention as Congress debates how to split crypto oversight. The CFTC has one commissioner and all of crypto.

It is not clear when the Senate will vote on the bill. Majority Leader John Thune wants to bring it to the floor soon. The calendar is tight. The bill needs at least 60 votes to pass, and the Senate is heading toward its August recess. Lummis did not offer a timeline.

For exchanges, custodians, and crypto firms planning around the bill, the uncertainty is the story. The draft is a negotiating document, not a finished law.