TLDR
- Senate Democrats push for stronger crypto market regulations, focusing on financial stability and ethics.
- Disagreements persist over disclosure rules and stablecoin yield limits.
- The White House has rejected ethics provisions targeting public officials’ involvement in crypto.
- Senate lawmakers face a tight deadline to finalize the bill before the 2025 calendar ends.
- The House has passed a similar bill, but the Senate is crafting its own version, aiming for bipartisan agreement.
The U.S. Senate’s crypto market structure bill faces delays as time runs out in the 2025 calendar. Lawmakers, especially Senate Democrats, continue to push back on key provisions. The White House’s involvement has complicated the negotiations, further stalling progress on the bill.
Unresolved Issues Between Democrats and Republicans
According to a report by CoinDesk, Senate Democrats have presented a new counteroffer to Republicans, sticking to their demands. The counteroffer aims to address market integrity, financial stability, and political ethics related to crypto. Democrats are focusing on the ability of public officials to profit from crypto ventures, particularly targeting President Trump’s connections to the industry.
A Democratic memo circulated this week reiterates the demands laid out in a September framework. The document clarifies that the party accepts much of the Republican framework, but still seeks important structural changes. Among the points of contention are stronger disclosure rules for digital assets and limits on stablecoin yield.
Democrats Push for Ethics and Stronger Regulations
One major sticking point is the proposed ethics rules to prevent public officials from profiting off crypto projects. Democrats want the legislation to explicitly prohibit elected officials from issuing or trading digital assets. These ethics provisions have been a priority for the party, spurred by accusations involving Trump’s business ties to the sector.
Senator Cynthia Lummis, a Republican lead negotiator, confirmed that the White House has rejected these ethics provisions. In addition, the White House is resisting demands for Democratic nominees to the federal commissions that will regulate digital assets. “The administration believes there is no conflict of interest,” said Lummis, referencing Trump’s business ties.
Deadline Looms as the Senate Calendar Closes
The Senate’s ability to finalize a markup hearing is increasingly uncertain as 2025 draws to a close. The current Congress must wrap up before the end of the year, leaving little time to push the crypto bill forward. Lawmakers are under pressure to finalize the bill’s framework before the start of 2026.
Senate Democrats continue to push for changes while Republican negotiators remain focused on proceeding with the current version of the bill. The House of Representatives passed a similar bill earlier this year, but the Senate has opted to craft its own. Lawmakers are aiming for a bipartisan solution but face an uphill battle with limited time left.
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