Senate Crypto Bill Stalls Over Ethics, Liability Concerns Ahead of Summer Recess

The fate of the Digital Asset Market Clarity Act remains uncertain as Senate negotiations stall over unresolved issues. The bill, which aims to provide market structure for the crypto industry, has been stalled due to disagreements over ethics limits, DeFi liability, and stablecoin yield.

One of the main hurdles is the debate over whether senior officials' crypto business ties should be restricted. Democrats have rejected some ideas but continue returning to the table, though the final scope of any restrictions remains unclear.

Other negotiations are also weighing on the bill, including concerns from Democratic senators about commodities oversight and law enforcement demands for changes to DeFi developer liability. Banks are also continuing to challenge the treatment of stablecoin yield.

Crypto industry groups remain engaged and are pushing for progress. The Digital Chamber is hosting a Washington fly-in involving members from firms such as Hyperliquid, Elliptic, and Anchorage Digital, with visits planned to up to 30 Senate offices to build support beyond the core negotiating group.