Senate Digital Asset Bill Stalls Over Trump Ethics Clash

A Senate effort to create a federal regulatory framework for digital assets has stalled over a bipartisan clash regarding ethics provisions. Democratic lawmakers, led by Senators Adam Schiff and Ruben Gallego, are demanding a ban that would prevent federal employees, including the president, from sponsoring, endorsing, or issuing cryptocurrencies.

This push centers on concerns that the legislation could enrich Donald Trump and his family through their crypto ventures, including World Liberty Financial and a Trump-branded memecoin. While Republicans have reached progress on stablecoin rules and technical market structures, the bill requires a bipartisan consensus on ethics to advance.

Some Republicans have joined the Democratic push, with Senator Thom Tillis stating that ethics language must be included before the bill leaves the Senate. The White House has rejected allegations of conflicts of interest, with Press Secretary Karoline Leavitt asserting that the president has stepped back from day-to-day business operations.