Senate Consider New Ethical Amendments for Crypto Market Regulation

The Democratic group in the U.S. Senate is preparing a series of amendments designed to strengthen ethical oversight in cryptocurrency market legislation. These lawmakers are concerned that without strict protections, crypto regulations could inadvertently create loopholes for public officials to profit from digital assets. The situation is becoming increasingly urgent as more allegations of conflicts of interest involve prominent figures, particularly related to involvement in certain crypto platforms reported to be financially beneficial.

Democratic Resistance to Public Conflicts of Interest

The main amendment proposed by Senator Michael Bennet aims to integrate digital asset ethical standards into broader market legislation. This proposal would prevent U.S. government officials from gaining financial benefits from crypto-related businesses during their terms. Senator Elizabeth Warren and her colleagues consistently emphasize the importance of more comprehensive legal protections to ensure that crypto provisions do not enable self-dealing practices by elected officials or senior policymakers. This move responds to growing concerns about the involvement of some government figures with high-value crypto projects, which have reportedly significantly increased their personal wealth.

CFTC and the Challenges of Incomplete Crypto Oversight

The second amendment, introduced by Senator Amy Klobuchar, proposes delaying the implementation of the law until the Commodity Futures Trading Commission (CFTC) reaches full capacity. Currently, the CFTC is supported only by the chair, while the other four commissioner seats remain vacant with no clear appointment schedule. Supporters of this amendment argue that conducting extensive crypto oversight without a full commission will weaken enforcement effectiveness and regulatory consistency. This organizational incompleteness poses a serious obstacle to creating solid and trustworthy oversight by market participants.

Expanding the Scope of Legislation Beyond the Crypto Sector

Other Democratic senators—Roger Marshall, Dick Durbin, and Peter Welch—proposed amendments attempting to connect the Credit Card Competition Act with this legislation. Their proposal bans payment networks and issuing banks from entering into exclusivity agreements on credit cards. This reflects how debates over the structure of the crypto market have evolved into a broader battleground concerning financial regulation, competition policy, and consumer protection overall.

Barriers and Uncertainty in the Legislative Process

The scheduled Senate markup process faces dual challenges. Previously, hearings were postponed due to disagreements over stablecoin limits and decentralized finance provisions—divisions that led Coinbase to withdraw its support for the legislative proposal. Now, bad weather forecasts, including a major snowstorm in Washington, DC, add uncertainty and could cause further delays. Despite these obstacles, the legislation remains one of the most closely watched crypto regulatory initiatives in Congress, with industry participants viewing it as a crucial step toward long-term regulatory clarity for the U.S. crypto sector.