Revised GOP crypto bill fails to win Democratic support over ethics concerns

Senate Banking Digital Assets Subcommittee Chair Cynthia Lummis, seen here on July 15, released the updated text. (Tom Williams/CQ Roll Call)

By Mark Schoeff Jr. Posted July 22, 2026 at 7:57pm

Senate Republicans released a revised cryptocurrency regulatory framework bill on Wednesday, adding a new section aimed at addressing potential crypto conflicts of interest among public officials. However, significant work remains before the measure can reach the Senate floor.

Democratic negotiators, angered by President Donald Trump's wealth being substantially boosted by income from his family's crypto ventures, continued to withhold their support — at least without further modifications.

Senate Banking Digital Assets Subcommittee Chair Cynthia Lummis released the updated text for the chamber's substitute amendment to a House-passed bill that would establish a regulatory "market structure" for the operations and oversight of digital asset markets.

"This is another step in my years' long journey to ensure the U.S. leads the way on digital assets," the retiring Lummis, R-Wyo., said in a statement. "I also want to thank my Democratic colleagues for their important contributions to this draft, and express my commitment to reaching a deal in the coming days that will allow this legislation to become law."

The measure combines a previous version approved by the Senate Banking Committee at a May markup with a separate amendment that the Senate Agriculture Committee — which shares jurisdiction — approved in January. Supporters are pushing for a Senate floor vote before the summer recess begins on August 7.

Key Addition: Ethics Section

A significant new addition to the legislation is an ethics section that would:

• Prohibit any public official or employee — and their spouse — from issuing or sponsoring a digital asset
• Cover the president, vice president, members of Congress, and federal judges, among others
• Be enforced by the U.S. attorney general, who could take enforcement actions against public officials and crypto exchanges for violations
• Sunset on January 20, 2029 — inauguration day for the next president

According to a fact sheet released by Lummis, the sunset date is significant because "this is a standard President Trump chose to hold himself to, not one Congress imposed on him."

Democratic Opposition Persists

Democrats have been pushing for an ethics provision due to what they describe as Trump's egregious crypto conflicts. The two Banking Committee Democrats who voted in favor of the bill during the May markup — Angela Alsobrooks of Maryland and Ruben Gallego of Arizona — said they would not support the bill on the Senate floor without strong ethics guardrails.

Alsobrooks was not satisfied with the revised bill, stating that state attorneys general should also be able to enforce the ethics rules.

"We've got to keep working," she told reporters.

Sen. Cory Booker, D-N.J., who raised strong concerns about ethics during the Agriculture Committee markup, dismissed the revised crypto bill.

"There's all these [Democratic] priorities that are not reflected in that text, and we're not going to support it," Booker told reporters. "So, we have to find a bipartisan pathway, or this is going to die."

Path Forward Uncertain

Sen. Thom Tillis, R-N.C., acknowledged that Republicans and Democrats remain divided.

"If we bridge the gap on ethics tonight, tomorrow, then I think we've got a shot," Tillis, a member of the Banking Committee, told reporters.

If all Republicans vote for the bill, at least seven Democrats would also need to support it to overcome a filibuster.

Clock Ticking

The legislative timeline is tight. There is a possibility the legislation could reach the Senate floor next week, although the following week remains uncertain.