Senate Crypto Bill Hits Snags as Deadline Looms

The U.S. Senate's Digital Asset Market Clarity Act is facing increased pressure to pass before its August recess, as lawmakers scramble to reconcile differences in a revised draft of the bill.

A new version of the legislation merges committee versions and adds an ethics provision aimed at preventing senior government officials from sponsoring or issuing cryptocurrencies, but bipartisan agreement on this issue remains unresolved.

The Senate must file a motion by Wednesday to have enough time to hold votes before August 7, with an ethics agreement needed by July 30. Democrats are pushing for a stronger and more enforceable ethics standard that would directly address President Trump's crypto-related earnings, while Republicans and the White House back language giving the president one year to divest or move businesses into a blind trust.

The bill faces resistance from both parties over investor protection, national security, and Trump's crypto ties. Senator Elizabeth Warren says the measure should be dead on arrival due to these concerns, while some Republicans have also raised objections to the current text.