Senate Republicans on Wednesday circulated a revised 616-page crypto regulation bill that includes a White House-backed ethics provision — but the package still lacks the Democratic support needed to clear the 60-vote threshold. Majority Leader John Thune wants to bring the legislation to the floor before the August recess, even without a bipartisan deal.
The ethics provision at the center of the fight
The new draft bars the president, vice president, members of Congress, senior executive branch officials, and their spouses from issuing or sponsoring certain digital assets while in office. The restrictions would expire in 2029 unless Congress extends them. Enforcement is assigned solely to the U.S. attorney general; state attorneys general cannot bring their own cases.
That language was negotiated between Senate Republicans and the White House. It reflects a compromise the Trump administration was willing to support. But Democrats say relying on the Department of Justice alone doesn't provide enough independent oversight — especially given President Donald Trump's own crypto-related business interests.
Democrats call the enforcement plan 'an unserious offer'
Sen. Angela Alsobrooks (D, Md.) said any enforcement mechanism limited to the Department of Justice is 'an unserious offer' and she cannot support the bill under its current ethics language. A group of Democratic senators — including Alsobrooks, Cory Booker, Ruben Gallego, and Mark Warner — said the current CLARITY Act draft remains inadequate on ethics, consumer protection, illicit finance, and market integrity.
Democrats have pushed to give state attorneys general independent authority to enforce the ethics rules. The revised Republican draft reserves that power exclusively for the U.S. attorney general. No Democrat has publicly endorsed the latest text.
What the broader bill would do
The package would establish clearer jurisdiction between the SEC and the CFTC, create a regulatory framework for digital assets, and include provisions affecting decentralized finance developers and blockchain infrastructure participants. It's the most ambitious crypto legislation to move through Congress this year.
Republicans hold 53 Senate seats. To reach 60 votes, they would likely need support from at least seven Democrats. Thune plans to bring the bill to the floor as soon as next week, even if no deal is reached. That sets up a high-stakes vote where the ethics provision — and the White House's role in shaping it — will be the main sticking point.
