Senate Crypto Market Structure Bill Still Open to Changes as Clarity Act Nears Vote

The U.S. Senate’s Digital Asset Market Clarity Act remains under negotiation despite the release of a consolidated draft, with lawmakers continuing to debate key issues including government ethics rules, illicit finance provisions, and regulatory oversight.

Senator Cynthia Lummis, one of the bill’s lead Republican negotiators, said the latest version combines proposals previously approved by the Senate Banking and Agriculture Committees but is not expected to be the final text. She described the process as challenging, adding that lawmakers are now seeking feedback from the cryptocurrency industry and other stakeholders before moving toward a Senate vote.

A major point of contention is the bill’s ethics section, which would establish conflict-of-interest restrictions for senior government officials, lawmakers, federal judges, and their spouses. Lummis said Republican and Democratic negotiators have spent weeks discussing the issue but remain divided over whether state attorneys general should have the authority to bring criminal or civil cases related to the ethics provisions.

Instead, the proposal would allow states to pursue legal action against crypto exchanges that list digital assets violating the ethics requirements. The debate has intensified because of President Donald Trump’s ties to cryptocurrency businesses, including a memecoin venture and a stablecoin issuer. Senator Elizabeth Warren criticized the draft, arguing it would leave loopholes that could shield improper conduct, while a group of Democratic senators said the legislation still requires stronger consumer protection, ethics, market integrity, and anti-money laundering safeguards.

The bill also strengthens anti-money laundering rules by expanding Bank Secrecy Act compliance, sanctions requirements, and protections for decentralized finance (DeFi) platforms. New provisions would address crypto ATM fraud and create a safe harbor allowing digital asset platforms to freeze suspicious funds while cooperating with law enforcement.

Another provision encourages bipartisan representation at the Securities and Exchange Commission and Commodity Futures Trading Commission by recommending that at least two commissioners at each agency be nominated in consultation with the Senate minority party.

It remains uncertain when the Senate will vote on the Digital Asset Market Clarity Act. Senate Majority Leader John Thune aims to bring the legislation to the floor soon, but scheduling challenges and the need for at least 60 votes could delay action before Congress begins its August recess.