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Ahmed Barakat
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Senate Republicans released a revised 616-page version of the Crypto Bill on July 22 that includes White House rules, but no Democrats have publicly endorsed the latest version. Senate Majority Leader John Thune said he wants to move the bill before the Senate recess in August, although it remains unclear whether Republicans can get the 60 votes needed to advance the legislation.
- Ethics prohibits the president, vice president, members of Congress, senior branch officials, and their spouses from donating or sponsoring digital content while in office.
- The Act designates the United States attorney general as the chief enforcement officer and does not allow state attorneys general to enforce ethics laws.
- The behavioral restrictions expire in 2029 unless extended by Congress.
- Republicans hold 53 Senate seats, meaning they would need support from at least seven Democrats if all senators vote.
The language of ethics was negotiated between Senate Republicans and the White House and showed the compromise the Trump administration was willing to support.
Under the proposal, crypto platforms can be required to avoid registering digital assets that have been issued or supported in violation of ethical rules, while the attorney general can pursue federal injunctions against officials and parties that intentionally violate them.
For many Democrats, however, the conservative approach remains a major concern. They argue that relying solely on the Department of Justice provides sufficient independent oversight, especially given President Donald Trump’s involvement in the crypto business. The concerns grew after Trump released annual financial statements showing he made significant investments in crypto businesses, including World Liberty Financial and its memecoin-related ventures.
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Alsobrooks Calls DOJ for Using ‘Improper Contributions’
Sen. Angela Alsobrooks (D, Md.), one of the Democrats who participated in the discussion on crypto legislation, said this week that any way to implement a permanent job at the Department of Justice is “pointless.” He said he would not support the bill in its current language while leaving room for discussion before the vote.
The biggest disagreement is the pressure. Democrats have repeatedly tried to give state attorneys general independent authority to follow through on mandates. The Republican-revised text instead reserves power to the US attorney general, barring states from bringing their own actions under the section. Democratic lawmakers have argued for months that stronger and more independent oversight is needed.
A group of Democratic senators, including Alsobrooks, Cory Booker, Ruben Gallego, and Mark Warner, said that the current version of the CLARITY Act remains inadequate in terms of ethics, consumer protection, illegal financing, and market integrity. Their support could be critical if Republicans hope to advance the legislation.
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Thune’s Downtime Puts Pressure on All Sides of the Crypto Bill
The purpose of Thune to follow the floor vote before the August recess appears to be designed to increase pressure on negotiators rather than to demonstrate that the bill already has sufficient bipartisan support. Asked if the legislation was ready, Thune said he was optimistic but acknowledged that further discussion and possible revisions would be necessary.
This approach can force lawmakers to quickly agree or publicly indicate that bipartisan support is unavailable. If the bill fails to advance before the Senate adjourns for a recess in August, negotiations could resume next year, although the timing of legislation would be uncertain.
The main package of crypto laws will establish a clear authority between the SEC and the CFTC, create a framework for the regulation of digital assets, and include those that affect financial institutions that have a share and participants in the blockchain. Although Republicans hope the revised language will attract Democratic support, negotiations are still ongoing, and the prospects for the bill remain uncertain.
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