Crypto Bill Stalls in Senate Amid Unresolved Ethics Provision

The Digital Asset Market Clarity Act is stalled in the Senate due to an unresolved ethics provision. The bill has been pending for years, and its delay has led to a significant shift of crypto developers and market activity offshore. According to a report by the Crypto Council for Innovation, 80% of crypto developers are based outside the U.S., and 88% of market share is also offshore.

The U.S. is one of the few major markets without a comprehensive regulatory framework in place, which has allowed other countries to move ahead in establishing clear rules. Renée Barton, Policy Research Director at the Crypto Council for Innovation, noted that 'regulatory uncertainty doesn't freeze activity, it redirects it.'

Senators Ruben Gallego and Thom Tillis sent a revised ethics proposal to the White House after a compromise was drafted, but there has been no response yet. The unresolved ethics provision is blocking the bill's progress, and if it remains unaddressed, it could be a major setback for the crypto industry.

A cloture vote on the bill would put every Senator on record regarding their stance on moving the bill forward, which would have significant implications for the 2026 midterm elections. Crypto political action committees are closely watching this development and would use a cloture vote as a clear signal of where support actually sits.