Democrats pan revised crypto bill as GOP eyes floor vote
A group of seven Democrats open to backing the bill said the latest text “falls short.”
07/22/2026 07:31 PM EDT
A revised version of the Senate Republicans’ landmark cryptocurrency bill was greeted with an icy reception from Democrats on Wednesday, casting uncertainty over the legislation’s prospects for passage and setting the stage for a mad scramble of negotiations as a floor vote looms.
Democrats who have spent months negotiating with Republicans over the so-called Clarity Act said the latest version of the bill does not move far enough in their direction on key issues — including language in an ethics provision that they want to see crack down harder on the ability of President Donald Trump to profit off his family’s businesses.
In a joint statement late Wednesday, a group of seven Democrats who are open to backing the bill and whose support is necessary to get the measure through the Senate said the “Republican-proposed text of the CLARITY Act as it currently stands falls short.”
“Key provisions including those addressing ethics for elected officials, consumer protection, illicit finance, conflicts of interest and market integrity must be strengthened,” the statement said. “We have been working in good faith with our Republican colleagues for the past year and will continue doing so to get this over the finish line.”
The statement was signed by Democratic Sens. Angela Alsobrooks of Maryland, Cory Booker of New Jersey, Catherine Cortez Masto of Nevada, Ruben Gallego of Arizona, John Hickenlooperof Colorado, Mark Warner of Virginia and Raphael Warnock of Georgia. Sen. Kirsten Gillibrand of New York — a key Democrat involved in the negotiations — was not included on the statement.
Sen. Cynthia Lummis (R-Wyo.), a leader of the industry-backed crypto effort, said in a statement that the bill is “legitimate” and “secures what both Democrats and Republicans want — keeping the digital asset industry on US soil and inviting spot and futures business to our shores.”
“I look forward to having discussions with my colleagues over the next few days,” she said.
The new 616-page draft released by Republicans on Wednesday merges sections advanced separately by the Senate Banking and Agriculture committees, which share jurisdiction over the bill. It also includes a White House-approved government ethics provision that would put new restrictions on how federal officials can engage with digital assets.
“The new Clarity text is a Republican text,” said Booker, who has been involved in negotiations over the portion of the legislation that falls under the Senate Agriculture Committee’s jurisdiction. “There’s only one way to get there, which is a bipartisan pathway.”
The biggest flashpoint surrounding the bill in the coming weeks is poised to be the ethics provision. Democrats have demanded that the bill include government ethics language to address concerns about the Trump family’s crypto businesses. The ethics provision in the bill released Wednesday stems from an agreement between the White House and GOP senators, and Democrats say it isn’t strong enough.
Democrats want to give state attorneys general the ability to enforce the ethics language — not just the Justice Department.
Republicans have said the language in their draft is a first-of-its-kind solution that would limit how federal officials can engage with digital assets. Trump “has agreed to implement a higher standard of ethics than the law requires that bans ALL federal officials—including himself, Congress and Federal judges,” Lummis said in the statement.
Other outstanding issues remain. Democrats are pushing for changes to address concerns raised by law enforcement groups about the bill — which have also now become a concern for some GOP senators.
Sen. John Cornyn (R-Texas) said Wednesday that he is concerned about a controversial provision — opposed by some law enforcement groups — that would protect certain crypto software developers or firms from being prosecuted for illicit activity committed by others on platforms they create. Cornyn said he has spoken to Cortez Masto, who is leading the push for changes, and wants “maximum protections against the bad guys” in the bill.
The banking lobby is also continuing to push for a tougher crackdown on crypto rewards programs that lenders say could spark deposit flight. A coalition of bank trade groups said in a joint statement Wednesday that “the latest version of the Digital Asset Market Clarity Act released today in the Senate still puts at risk the local lending that drives economic activity in the U.S.”
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