Revised GOP Crypto Bill Fails to Win Democratic Support Over Ethics Concerns

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 conflicts of interest involving public officials and digital assets. However, significant work remains before the measure can advance to the Senate floor.

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

Updated Legislation Released

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 digital asset markets and their oversight.

"This is another step in my years' long journey to ensure the U.S. leads the way on digital assets," said Lummis, R-Wyo., who is retiring. "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 during a May markup
• A separate amendment approved by the Senate Agriculture Committee in January, which shares jurisdiction

Supporters are pushing for a Senate floor vote before the summer recess begins on August 7.

New Ethics Provisions

A significant 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. According to a fact sheet released by Lummis, those covered include:

• The president and vice president
• Members of Congress
• Federal judges

The ban would be enforced by the U.S. attorney general, who could take enforcement actions against public officials and crypto exchanges for violations. The ban would sunset on January 20, 2029 — inauguration day for the next president.

According to the fact sheet, 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 of interest. 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 expressed dissatisfaction with the revised bill, arguing 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 remains tight. There is a possibility the legislation could reach the Senate floor next week, although the following week may be more realistic.