U.S. Senate crypto market bill faces tighter path before August recess

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Senate crypto market bill

Highlights

Senators released a revised Clarity Act draft adding an ethics clause restricting senior officials from sponsoring or issuing cryptocurrencies, targeting concerns over Trump's crypto interests.
The Senate must file a motion by Wednesday to have enough time to hold votes before the August 7 recess, with an ethics agreement needed by July 30.
The bill faces bipartisan resistance over investor protection, national security, and Trump’s crypto ties, jeopardizing passage as the Senate juggles a crowded agenda.

Revised bill text and Senate timeline

As reported by CoinDesk, senators have released new legislative text combining the committee versions of the Clarity Act while adding an ethics provision aimed at preventing senior government officials from sponsoring or issuing their own cryptocurrencies. The draft responds to concerns tied to President Donald Trump's crypto interests, but it does not yet settle the central political dispute holding up the bill.

Democrats are seeking a stronger and more enforceable ethics standard that would directly address Trump's crypto-related earnings, while Republicans and the White House are backing language that gives a president one year to divest or move businesses into a blind trust, with enforcement assigned to the Department of Justice. Critics of the current language argue it relies too heavily on executive branch enforcement, expires when the next president takes office and does not prevent Trump from continuing to benefit from existing tokens tied to his name.

If the measure is to advance before the summer recess, lawmakers are watching for a motion to proceed on Monday or Tuesday. One person following the process said that if the motion is filed by Wednesday, the Senate would still have enough time to vote before August 7, the final day of the summer session, with cloture votes more likely in the week of August 3 and a working ethics agreement likely needed by Thursday, July 30.

Political obstacles and industry stakes

The debate is extending beyond crypto market structure into election-year politics. Supporters of the provision, including Senator Cynthia Lummis, say it applies broadly to government officials and federal judges, while White House adviser Patrick Witt and some industry participants describe it as the most sweeping ethics concession any U.S. president has agreed to.

Even so, the bill still faces resistance from both parties. Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee, says the measure should be dead on arrival because of concerns around investor protection, national security and Trump's crypto ties, and some Republicans have also raised objections to the current text.

Crypto industry participants are still pushing for passage, arguing the legislation would establish a regulatory framework and include at least some investor protections, while failure to pass it would leave the sector without new safeguards. The Senate's crowded agenda could complicate that effort, as lawmakers also need to handle nominations, including Jay Clayton's nomination as Director of National Intelligence, as well as sanctions legislation involving Russia and Iran and other time-sensitive bills.

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