Senate Democrats Reject Revised Crypto Regulation Bill Over Ethics Concerns

Senate Democrats turned down the latest draft of the CLARITY Act on Monday, which aims to set a federal framework for digital assets by splitting oversight between the SEC and CFTC, along with rules for stablecoins and developer protections.

Republicans, led by Sen. Cynthia Lummis, presented it as their final offer after over 120 Democratic-requested changes, but Democrats want stronger ethics provisions amid concerns over Trump's crypto investments.

The bill faces a key procedural vote Tuesday needing 60 votes to advance, with Republicans holding 53 seats and a Democratic counterproposal possible.