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The Senate’s updated crypto market structure bill faces strong Democratic opposition before its expected release. Lawmakers planned to publish new CLARITY Act text after Republican senators briefed President Donald Trump at the White House on Thursday.
Democrats were not expected to attend the meeting. Several senators also said they would reject the draft unless Republicans added stricter ethics rules covering Trump’s crypto business interests.
Senator Bernie Moreno said updated regulatory text could be released shortly after the White House meeting. Senator Cynthia Lummis also said she hoped the draft would become public after lawmakers spoke with Trump, although she did not confirm the timing.
Moreno said lawmakers had spent months meeting with Democrats and argued that the Senate should now move toward a vote before the August recess.
However, Democratic senators said the expected version did not reflect a bipartisan agreement. They argued that Republicans planned to take ethics language to Trump before completing negotiations with Democratic lawmakers.
Senator Cory Booker said talks were still active. “I hope they’re not going to drop something before we finish our negotiation,” Booker said. “The only way to get this done is a bipartisan pathway.”
The largest dispute concerns rules for public officials with financial ties to crypto companies, tokens and other digital asset projects. Democrats want firm limits that prevent senior officials from earning money from crypto ventures while in office.
Senator Ruben Gallego said the ethics language he had reviewed was ‘very weak.’ He added that it gave the president ‘a lot of latitude’ to keep earning from crypto interests and did not provide enough consumer protection.
Gallego said Democrats would not provide the votes needed without stronger rules. “At the end of the day, we don’t have strong ethics,” he said. “You’re not going to have the Democratic votes.”
Republicans dispute that view. Moreno has said the bill includes strong ethics measures. The White House has backed rules covering all elected officials but has resisted language viewed as targeting Trump alone.
A Democratic Senate aide said the Republican proposal was weaker than what Democrats would accept. The aide also said Democratic negotiators had not approved the version shown to the White House.
The CLARITY Act would divide digital asset oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
It would also create registration and operating rules for exchanges, brokers and other crypto businesses. Supporters say the framework would help firms classify digital assets and meet federal requirements.
Republicans do not hold the 60 votes needed to overcome a possible filibuster. Senate leaders therefore need support from several Democrats before moving the bill toward a final vote.
Some Democrats backed earlier versions during committee work, but those votes did not guarantee support for the final measure. Opposition from key negotiators now makes the vote count more difficult.
The Senate calendar adds further pressure. Lawmakers must complete other major bills before leaving for the August recess. Any Senate version would also need House approval or more negotiations between both chambers.
Crypto companies have urged Congress to pass market structure legislation. They say current jurisdictional lines remain uncertain for token listings, custody, registration and trading services.
Without a new law, firms still rely on agency guidance, court decisions and enforcement actions when deciding whether a digital asset falls under SEC or CFTC oversight.
The next step depends on the wording released after the White House meeting. Democrats want stronger guardrails, while Republicans are pressing for a vote before the recess. Until both sides reach an agreement, the CLARITY Act faces a difficult path through the Senate.
