Crypto Bill Faces More Scrutiny as Lummis Flags Ethics, Other Provisions
Quick Read:
- Lummis says ethics and a handful of other provisions will be hashed out through the weekend
- Republicans drew a “red line” against letting state attorneys general sue over ethics violations
- Senate Democrats say the bill still “falls short” and won’t back it as written
- Bill needs 60 votes; Senate breaks for recess August 7
The Crypto Clarity Act just cleared a major hurdle with the release of its updated text, but Senator Cynthia Lummis says the bill’s most contentious piece, its government-ethics section, is still up for grabs.
Lummis, one of the lead negotiators on the Digital Asset Market Clarity Act, told CoinDesk the newly merged draft, which combines bills from the Senate Banking and Agriculture Committees, is “finally” ready for public and industry feedback. But she was clear the text isn’t final. “It’s time to show everyone the fully integrated bill that we will be voting on, and get the feedback from the industry that’s about to be regulated, as well as others,” Lummis said. “So I’m pleased we’ve reached this point.”
The ethics provision has been the most fiercely contested part of the entire Crypto Clarity Act process. Republicans and Democrats reportedly negotiated “for weeks on end” but hit an impasse over whether state attorneys general could bring criminal or private lawsuits against officials covered by the rule. Lummis called that a “bright red line” for many senators — and for the White House, which has faced repeated lawsuits from state AGs. Instead, states would be able to sue crypto exchanges that list assets violating the ethics rule.
The ethics agreement, if finalized, would cover the president, lawmakers, and high-level federal judges — plus their spouses. That’s notable given President Trump’s own crypto ventures, including a memecoin bearing his name and a stablecoin issuer.
Not everyone is convinced the current draft goes far enough. A group of Senate Democrats said Wednesday the bill still falls short of their expectations, though they intend to keep negotiating. Senator Elizabeth Warren went further, arguing the bill as written would leave Trump’s crypto businesses largely untouched, with any wrongdoing unlikely to be pursued by a loyal Department of Justice, and legally shielded once he’s out of office.
Beyond ethics, Lummis said lawmakers may continue refining the bill’s illicit finance provisions, including new anti-fraud measures for crypto ATMs and a “safe harbor” letting platforms freeze suspicious funds while cooperating with law enforcement. The text also nudges Senate Minority Leader Chuck Schumer to submit Democratic nominee names for SEC and CFTC commissioner seats, agencies currently without a single Democratic commissioner.
Timing remains uncertain. Majority Leader John Thune wants a vote soon, but the Senate will be short-staffed next week for Senator Lindsey Graham’s funeral, and lawmakers leave for summer recess on August 7. The bill needs at least 60 votes to advance.
