Key facts
- A cryptocurrency bill in the Senate is delayed due to unresolved issues.
- Democrats are seeking stronger ethics provisions related to President Donald Trump's potential crypto business profits.
- Law enforcement and banking groups have also raised concerns requiring amendments.
- The Wall Street Journal has published critical editorials supporting banking industry concerns.
- The delay increases pressure on lawmakers to reach a compromise before a recess.
A significant cryptocurrency bill in the U.S. Senate is facing delays as lawmakers struggle to reconcile key differences, particularly concerning ethics provisions and regulatory demands. Republicans are blaming Democrats for the holdup, as a unanimous consent agreement is needed to bring the legislation to a vote before a scheduled recess. Democrats, however, are insisting on further bipartisan negotiations, fearing that a premature vote could lead to the bill's failure.
Central to the dispute is an ethics provision aimed at preventing President Donald Trump from profiting from his family's cryptocurrency businesses. While a group of Democrats has shown openness to the bill, they are pushing for stricter language. Senators Tillis and Ruben Gallego have proposed a counteroffer to the White House that includes a divestment requirement for Trump and a provision allowing state attorneys general to sue the Justice Department for non-enforcement, though some Republicans have expressed reservations about the latter.
Beyond the ethics debate, Democrats are also seeking amendments to address concerns raised by law enforcement groups and changes to the bill's commodities section. Senator Cory Booker, leading negotiations for Democrats, stated that a bipartisan path is achievable if ethical considerations are properly addressed. Meanwhile, banking groups are lobbying for changes to crypto rewards programs, which they argue resemble traditional deposit accounts. These concerns have led at least two Republicans to signal their opposition, with The Wall Street Journal editorial board also weighing in against crypto companies on the issue.
Senator John Kennedy, a supporter of the bill, expressed frustration with the delay, suggesting that continued pressure from banks will only intensify. He noted that the ongoing discussions and critical commentary, including from The Wall Street Journal, are contributing to the legislative impasse.