White House targets July 4 for crypto regulation bill

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White House crypto regulation bill

Highlights

The White House targets July 4 as the deadline for comprehensive crypto regulation, with the Senate expected to advance legislation in June.
The bill proposes a new federal framework dividing oversight between the Commodity Futures Trading Commission and Securities and Exchange Commission, addressing stablecoin reward disputes after recent compromise language.
Democratic senators demand an ethics provision amid concerns over the Trump family's estimated $1.4 billion crypto ties, with proposals for broad rules covering all federal officials.

Legislative timeline and key hurdles

As first reported by The Block, White House crypto adviser Patrick Witt says the administration is aiming for a July 4 deadline for sweeping crypto regulation, with the Senate potentially advancing legislation in June. Witt, executive director of the President’s Council of Advisors for Digital Assets, says that timetable would leave enough time for the House to pass its version after reconciling differences with the measure it approved last year.

The bill seeks for the first time to establish a federal framework for regulating the crypto industry, including dividing oversight between the Commodity Futures Trading Commission and the Securities and Exchange Commission. One of the main obstacles in the Senate Banking Committee has centered on the treatment of stablecoin rewards, although compromise language released last week appears to have addressed part of that dispute, even as bank trade groups argue it still falls short.

The Senate Banking Committee could move as early as next week to hold a hearing, amend the bill and vote on it. Witt tells the Consensus conference in Miami that he remains optimistic a compromise is within reach.

Ethics debate shapes bipartisan support

Another major issue now shaping the bill is ethics, as Senate Democrats raise concerns about President Donald Trump and his family’s crypto ties. Bloomberg has estimated those connections have generated about $1.4 billion, while Trump and Melania Trump launched memecoins before the inauguration and the family has backed the DeFi and stablecoin project World Liberty Financial.

At the Miami conference, Senator Kirsten Gillibrand says the bill will not win support without an ethics provision. Witt says recent talks with Democrats have gone well, but adds that any final language cannot be written to target a single family, politician or officeholder.

When asked whether restrictions would cover the president, Witt says the rules would apply broadly, from the president to a new Capitol Hill intern. He argues the focus should be on standards for the Office of the President rather than language aimed at one individual.

Our earlier coverage of U.S. crypto market structure negotiations explained that the Senate bill’s progress has increasingly hinged on an ethics provision, with Senator Kirsten Gillibrand arguing it cannot advance without guardrails such as banning insider trading by lawmakers and officials. We also noted that talks have been slowed by disputes over stablecoin rewards, though emerging compromise language has kept a pre-recess vote timeline in view as Democrats intensify scrutiny of political conflicts of interest tied to Trump family crypto ventures.

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