Key Insights:
- Crypto news: Senate Democrats filed ethics amendments targeting officials profiting from crypto holdings.
- Credit Card Competition Act language resurfaced inside the crypto market structure bill.
- Senate Agriculture Committee markup faced delay risks from vacancies and weather.
U.S. Senate Democrats pushed new ethics and competition amendments into sweeping crypto legislation ahead of Tuesday’s markup. The amendments targeted conflicts of interest, agency readiness, and payment network competition as lawmakers revived stalled crypto regulation talks in Washington.
The filings arrived before the Senate Agriculture Committee’s long-delayed markup of the crypto market structure bill. The panel planned the session for Tuesday after postponing an earlier vote on Jan. 15.
The move mattered because the bill aimed to define federal oversight for digital assets. Lawmakers framed it as a step toward regulatory clarity for the crypto market.
Crypto News Ethics Provisions Targeted Officials’ Crypto Exposure
One amendment, filed by Senator Michael Bennet, sought to fold the Digital Asset Ethics Act into the broader package. The proposal aimed to restrict U.S. officials from profiting directly from crypto holdings.
The filing reflected growing Democratic pressure over perceived conflicts of interest in crypto regulation. Senator Elizabeth Warren previously raised concerns about officials’ financial exposure to digital assets.
Those concerns intensified after President Donald Trump’s reported involvement with World Liberty Financial. Critics argued the platform increased his net worth by hundreds of millions of dollars, according to public disclosures.
Democrats framed the ethics language as necessary guardrails for the credibility of crypto regulation. Supporters said lawmakers overseeing the sector should not hold direct financial stakes.
Crypto News: Credit Card Competition Act Resurfaced in Crypto Bill
Another notable amendment came from Senators Roger Marshall, Dick Durbin, and Peter Welch. Their proposal revived language from the Credit Card Competition Act.
The amendment sought to prevent credit card networks and certain issuers from enforcing network exclusivity. The text mirrored provisions long opposed by major payment networks.
Brendan Pedersen reported the filing on Jan. 24 and shared the amendment language publicly. He noted the provision would sound familiar to the credit card lobby.
The inclusion signaled lawmakers’ willingness to attach unrelated financial reforms to crypto regulation. Observers said the tactic could complicate bipartisan negotiations.
Crypto News: CFTC Staffing Emerged As a Gating Issue
Senator Amy Klobuchar filed a separate amendment focused on agency readiness. Her proposal would delay the bill’s implementation until the Commodity Futures Trading Commission reached full staffing.
The CFTC currently operates with only one confirmed commissioner. Chair Michael Selig was sworn in on Dec. 22, leaving four seats vacant. There was no public timeline for filling the remaining positions. Klobuchar argued the agency lacked the capacity to absorb new crypto oversight responsibilities.
The amendment reflected broader concerns about enforcement gaps under expanded crypto regulation. Lawmakers questioned whether understaffed agencies could supervise fast-moving digital markets.
Industry Support Fractured Before Markup
The Senate Agriculture Committee previously postponed the markup amid disputes over provisions related to decentralized finance. Stablecoin reward restrictions emerged as a key sticking point.
Coinbase withdrew support for the bill after those disagreements surfaced. The company cited unresolved concerns around user incentives and compliance burdens.
The setback underscored persistent divisions between lawmakers and industry participants. While many firms sought clearer crypto regulation, details continued to drive pushback.
Tuesday’s markup represented a renewed attempt to restart negotiations. Amendments signaled Democrats’ intent to shape the bill’s scope more aggressively.
Weather and Logistics Threatened Another Delay
Beyond policy disputes, logistical risks loomed over the planned markup. Forecasters predicted a snowstorm in Washington, D.C., over the weekend. Capitol Hill staff flagged the possibility of travel disruptions. Lawmakers privately acknowledged the session could face another postponement.
Any delay would extend uncertainty across the crypto market. Traders and firms tracked the bill as a potential catalyst for regulatory clarity. The timing also mattered for agencies preparing rulemaking frameworks. Prolonged delays risked pushing implementation timelines further into 2026.
What Came Next for Crypto Regulation
If the committee advanced the bill, it would move to a broader Senate debate. Further amendments were expected as lawmakers negotiated final language.
Ethics provisions and payment network rules could emerge as flashpoints. Industry groups signaled concern about expanding the bill beyond digital assets.
Still, supporters argued the amendments addressed systemic financial risks. They framed the package as a chance to align crypto regulation with existing market standards.
For now, the crypto market watched Tuesday’s schedule closely. The markup represented the next test for Washington’s ability to legislate digital assets coherently.