Key Democratic lawmakers demand stronger consumer protections and illicit finance rules in the Republican-led crypto bill.
A group of influential Senate Democrats rejected the latest draft of the Digital Asset Market Clarity Act, citing insufficient ethics provisions and weak consumer protections. The lawmakers, including core negotiators needed to advance the bill, said the Republican proposal falls short on illicit finance and market integrity measures.
The Clarity Act, aimed at regulating crypto market structure, saw only two Democratic votes in committee. Previous versions had garnered broader support, but the new draft omitted key safeguards, according to the joint statement. Republicans released the updated text earlier Wednesday.
The Democrats pledged to continue negotiations but insisted on strengthening ethics rules for elected officials and conflicts of interest provisions before backing the bill.