White House Pushback Slows Progress on Bipartisan Crypto Market Structure Bill

Senator Cynthia Lummis, a key Republican negotiator on the long-awaited U.S. crypto market structure bill, said the White House has rejected proposed ethics language she crafted with Democrats, creating a major stumbling block for the legislation. Speaking at the Blockchain Association’s policy summit in Washington, Lummis explained that she has been acting as a bridge between Democratic colleagues and the administration as both sides work to finalize a draft expected to be unveiled by the end of the week, with a markup planned for next week.

According to Lummis, she and Democratic Senator Ruben Gallego developed ethics provisions aimed at addressing concerns that top government officials should not profit from industries they regulate. Democrats have been pushing for clear restrictions, especially given President Donald Trump and his family’s involvement in crypto-related businesses. While Lummis did not go into specifics, she confirmed that the White House dismissed the initial version, urging negotiators to “do better,” forcing another round of revisions.

Democrats are also seeking assurances that their party will have representation on both the Commodity Futures Trading Commission and the Securities and Exchange Commission. Despite the bipartisan structure those agencies are meant to maintain, the White House has resisted committing to Democratic commissioner appointments, creating further tension in the talks.

As chair of the Senate Banking Committee’s digital assets subcommittee, Lummis emphasized the urgency of releasing the bill, noting that the language has been shifting quickly as negotiators rush to finalize it in the remaining two-week window. The crypto industry, she added, is growing increasingly anxious over the closed-door nature of the negotiations.

Senator Kirsten Gillibrand, Lummis’ longtime Democratic partner on crypto legislation, said the emerging draft will be significantly more comprehensive than the House-passed Clarity Act, highlighting that their version tackles complex areas such as decentralized finance exchanges. She expressed confidence that the final bill will be “a strong product” once negotiations conclude.