Senate Eyes Mid-May Crypto Markup as Ethics, Trump Ties Stall

Sen. Thom Tillis urged Senate Banking Committee Chair Tim Scott to schedule a mid-May markup of a crypto market-structure bill and requested fresh legislative text a few days before the session. Tillis made inclusion of ethics provisions a condition for his support and negotiators continue to work on disputed sections covering stablecoin reward rules, the split of enforcement between the Commodity Futures Trading Commission and the Securities and Exchange Commission, and language on decentralized finance enforcement.

The measure has been stalled in the Senate Banking Committee for months while senators negotiate technical and political terms. Lawmakers are debating how to regulate stablecoin rewards after public disagreements between banking interests and crypto firms. Some members have raised concerns that proposed language on decentralized finance could limit prosecutors’ ability to pursue financial crime.

The House approved a related bill last year known as Clarity. That bill defined jurisdiction over digital commodities and included a restriction barring members of Congress and senior executive branch officials from issuing digital commodities while serving in office.

Ethics questions have moved to the center of negotiations as the campaign season approaches. Several Senate Democrats have linked opposition to the industry’s lobbying and to questions about whether members of the president’s family could profit from regulatory changes. Estimates circulated recently suggest the Trump family’s crypto ventures have generated significant revenue and include stakes in mining operations; those ties have been cited by Democrats opposing the measure.

Committee leaders disagree on where any ethics language should be considered. Chair Scott does not expect ethics provisions to advance through the Banking Committee and has indicated they may need to be addressed in a different forum before a full Senate vote. If the banking panel cannot resolve conflict-of-interest rules, additional committee referrals or separate legislation could be required.

Chair Scott described the Senate as in a “red zone” for passage and expressed a desire to secure unanimous Republican committee support to enable a bipartisan markup in May, followed by a floor vote in June or July. One Republican, Sen. John Kennedy, has withheld support, citing frustration over an unrelated stalled housing bill. Senate rules require 60 votes to overcome filibuster hurdles, making final passage dependent on broad GOP backing and some Democratic votes.

Industry sources estimate the bill’s odds of clearing the full Senate range from about 15% to 50%, reflecting differing analyses. If negotiators resolve disputes over stablecoin rewards, DeFi enforcement and ethics language, lawmakers could present revised text for a mid-May markup and pursue floor consideration this summer. If those issues remain unsettled, the legislation is likely to stay stalled while policy, legal and political questions are worked through.

Tillis set a condition: “I would oppose the crypto bill if it did not include ethics language before it leaves the Senate.” Scott outlined his goal: “I just want to have 13 of 13 Republicans.”