US crypto bill faces fresh hurdles in the Senate

A group of US lawmakers has hit fresh hurdles in its effort to pass a bill that would create a clearer regulatory framework for cryptocurrencies. Senators remain divided over ethics rules and concerns raised by the banking industry. The proposed Digital Asset Market Clarity Act would define how regulators oversee digital assets and clarify the responsibilities of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Much of the cryptocurrency industry supports the legislation, arguing that overlapping rules have created uncertainty for companies operating in the sector.

Ethics concerns remain

President Donald Trump’s involvement in cryptocurrency businesses remains one of the biggest sticking points. Several Democratic senators want stronger ethics provisions. They argue that public officials and their families should not benefit from crypto ventures while serving in office, and they say the current draft fails to address those concerns. Republican lawmakers have proposed amendments, but senators continue to negotiate key parts of the legislation.

Banking industry seeks changes

The banking industry is also pressing lawmakers to amend the bill. Banking groups say the proposed stablecoin rules could encourage customers to move money from traditional bank accounts into digital assets. They warn that lower deposits could reduce the funds banks use to support lending. Crypto companies support the legislation because they believe it would give the industry a clearer regulatory framework after years of overlapping oversight.

Senate running short on time

The Senate will soon begin its August recess, giving lawmakers little time to reach an agreement. If senators fail to pass the bill before then, they will likely resume debate later this year. Exchanges, investors and financial institutions are closely watching the legislation because it could shape how the United States regulates digital assets in the years ahead.