Gillibrand Blocks Crypto Bill Without Ethics Provision

Sen. Kirsten Gillibrand told attendees at the Consensus Miami conference she will not support the Senate’s crypto market-structure bill unless it contains an explicit ethics provision that limits financial dealings by public officials.

Gillibrand urged language that would bar the president, vice president, members of Congress and senior administration officials from using insider status to profit from digital-asset industries. She said she is working with Republicans, Democrats and the White House to secure agreement on the text.

The market-structure bill, intended to create a federal framework for crypto markets, has been stalled in the Senate for months. Lawmakers had been negotiating treatment of stablecoin reward programs; negotiators recently reached a compromise between Sens. Angela Alsobrooks and Thom Tillis that could allow for a committee markup. With that issue eased, Gillibrand identified ethics language as the next hurdle.

Gillibrand cited President Trump’s recent memecoin launches and the Trump family’s involvement in the DeFi and stablecoin project World Liberty Financial as reasons for the ethics demand. An outside estimate places the president’s earnings from crypto ventures at a minimum of $1.4 billion. Lawmakers have also raised concerns about a crypto-linked investment tied to the United Arab Emirates and potential national security and foreign influence risks.

Earlier this year the Senate Agriculture Committee advanced its version of the bill without Democratic support. Democrats in that committee proposed amendments to prohibit certain digital-asset transactions by the president, vice president, members of Congress and some federal officials; those amendments were not included. Senate Banking Committee Chair Tim Scott has said ethics matters fall outside his panel’s jurisdiction, creating a question of which committee will carry any ethics language into the final measure.

Gillibrand also pressed for consumer protection provisions to address illicit finance and the risk of terrorism financing through crypto channels. She said there is momentum to finish work on the bill before Congress recesses in August.

At the conference, Gillibrand warned attendees and added, ‘We cannot let greed and corruption in Washington tear this industry down, and without that provision, that's exactly what will happen.'

Industry officials are watching the negotiations. Coinbase's chief legal officer expressed confidence that a market-structure bill could pass before the end of the summer if outstanding policy and ethics disputes are resolved.

If negotiators resolve committee jurisdiction and agree on limits for public officials, the bill could move to committee markup and then to the Senate floor. Until the ethics language is accepted, Gillibrand has made clear she will oppose the measure, making the provision a gatekeeper for any bipartisan agreement.