Warren and Slotkin May Withhold Support for Senate Market-Structure Bill Without Inquiry Into USD1 Stablecoin Ties

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  • Two Democratic senators seek probes into alleged conflicts tied to senior White House aides

  • Warren and Slotkin say answers are needed before they back a digital asset market structure bill

  • Senate calendar showed no scheduled vote; House version passed bipartisanly as the CLARITY Act

Meta description: US market structure bill at risk after Senators Warren and Slotkin demand investigations into alleged conflicts; learn how this could delay Senate action.

No scheduled consideration of a market structure bill appeared on Senate calendars as of Wednesday, and pushback from Democrats could challenge what is expected to be a tight vote.

What is the current status of the US market structure bill?

The US market structure bill (also referenced as the Responsible Financial Innovation Act in the Senate and the CLARITY Act in the House) has passed the House with bipartisan support but has no scheduled Senate floor vote as of publication. Senators’ demands for investigations into alleged conflicts have created additional uncertainty for Senate timing.

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Why are Senators Elizabeth Warren and Elissa Slotkin opposing the bill without an investigation?

Warren and Slotkin wrote to multiple federal offices requesting an inquiry into whether two White House advisers had conflicts that could undermine national security and the integrity of crypto markets. They cited a recent media report describing a $2 billion Abu Dhabi investment and alleged facilitation involving senior officials. The senators said they will not support market structure legislation until those questions are resolved.

Cryptocurrencies, Law, Congress, SEC, CFTC, White House
Tuesday letter from Senators Elizabeth Warren and Elissa Slotkin. Source: US Senate Banking Committee

How could the senators’ demands affect Senate consideration of the bill?

Front-loaded for clarity: their demands could delay a vote and shift negotiations. With the Senate often requiring narrow margins for passage, two Democratic holdouts can force additional hearings, amendments, or procedural delays. Republicans and some Democrats had signaled willingness to work together, but this development raises the threshold for bipartisan agreement.

What triggered the senators’ letter and what allegations are in play?

The letter follows reporting that described a March investment involving an Abu Dhabi firm and a cryptocurrency exchange, reportedly settled using the USD1 stablecoin connected to the Trump family business. Senators asked State, Commerce, and Ethics officials to evaluate whether senior White House officials’ actions represented conflicts of interest or national security risks. The reporting referenced in the senators’ correspondence includes coverage by The New York Times; Cointelegraph has reported on related developments.

When did the House pass its market structure bill and what does that mean?

The House passed a suite of digital asset bills, including its market structure bill (the CLARITY Act), in July with bipartisan support—78 Democrats voted in favor. That vote shows significant House momentum but does not guarantee Senate approval. Senate committees and floor calendars control timing and are now influenced by oversight concerns raised by Senate Democrats.

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Wyoming Senator Cynthia Lummis, a proponent of clearer digital-asset rules, and other Republicans have pushed for committee consideration. A group of 12 House Democrats previously indicated they would work with Republicans if anti-corruption provisions were included. Warren has stated support for regulation of digital assets but opposed legislation written by industry interests.

The investigation request does not automatically halt the bill, but it increases political pressure and can delay floor consideration if senators with decisive votes insist on results before supporting the bill.

Passage remains uncertain. Sponsors have expressed a goal to finish committee work and secure passage, but timing depends on negotiations, any required investigations, and Senate scheduling priorities.


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Source: https://en.coinotag.com/warren-and-slotkin-may-withhold-support-for-senate-market-structure-bill-without-inquiry-into-usd1-stablecoin-ties/