A Senate effort to pass a major crypto market structure bill is running into complications as negotiations become increasingly entangled in a political fight over ethics rules tied to President Donald Trump's family crypto businesses.
The legislation is designed to create a federal framework for regulating digital assets, including how oversight is divided between agencies such as the SEC and CFTC. The crypto industry has pushed for the measure for years, arguing it would reduce regulatory uncertainty and help attract institutional investors. Any progress on the bill now depends on whether Democrats and Republicans can agree on ethics restrictions covering how public officials engage with digital assets, Politico reports.
"There is no final bill — there is no final movement — unless there is a bipartisan agreement when it comes to the ethics provision," Sen. Ruben Gallego told the outlet, highlighting how central the issue has become in negotiations.
Democrats are seeking language that would prevent federal officials, including the president, from sponsoring, endorsing or issuing cryptocurrencies while in office. Sen. Adam Schiff, who is helping lead Democratic talks, reportedly said they want "a ban on sponsoring, endorsing or issuing digital assets that applies to all federal employees," including the president. The details of enforcement are still being negotiated.
The dispute has drawn renewed attention to Trump-linked crypto ventures. These include World Liberty Financial, a crypto project co-founded by Trump and his sons, along with a Trump-branded memecoin and digital asset initiatives tied to Trump Media & Technology Group. Trump has said he has stepped back from day-to-day business operations and placed assets in a trust managed by his children, but Democrats argue the scale of those interests raises unresolved ethical questions as legislation is drafted.
The White House has rejected allegations of conflicts of interest. Press secretary Karoline Leavitt said Trump and his family "have never engaged, and will never engage, in conflicts of interest," while officials say the president has followed through on his pledge to make the U.S. "the crypto capital of the world."
Ethics watchdogs have been more critical. Donald Sherman of Citizens for Responsibility and Ethics in Washington told Politico that recent Trump-linked crypto activity amounts to "a pretty blatant example of the president selling access," saying it reflects a lack of transparency around influence and financial gain.
Republicans are still trying to advance the broader legislation after months of delays tied to policy disputes. As The Block has reported, lawmakers have made progress on technical aspects of the bill, including market structure rules and stablecoin-related provisions, but ethics concerns continue to resurface as one of the final sticking points.
Earlier reporting from The Hill noted that the bill has been stalled for months amid broader policy disagreements, even as Republican leadership continues pushing for committee action in the coming weeks. At the same time, Reuters has reported on the administration's broader push to position the United States as a global crypto hub, even as political tension grows over Trump family-linked industry ties.
