Ethics Clause Threatens US Crypto Market Structure Bill
Democratic senators are holding up progress on the US crypto market structure bill over demands for stringent ethics safeguards. The proposed legislation, intended to provide regulatory clarity for digital assets, now faces potential derailment unless provisions preventing public officials from financial conflicts with the industry are included.
Ruben Gallego and other Democrats have drawn a "red line" on the issue, threatening to withdraw support without these protections. The impasse centers on preventing current and future officials, including the president, from benefiting financially from crypto projects affected by the legislation.
This unexpected roadblock comes as the industry anticipates long-awaited regulatory frameworks. The stalemate could significantly delay implementation of rules that WOULD define jurisdictional boundaries between regulators and establish clearer operating parameters for market participants.
