US Senate Democrats Push for Conflict of Interest Safeguards in Crypto Market Structure Bill
Democratic leaders on key committees dealing with legislation governing the structure of the crypto market are reportedly drawing a line under the question of whether elected officials profit from the industry. Several Democratic lawmakers in the US Senate are pushing for protective limits on conflicts of interest in a proposed bill on crypto market structure.
According to a report from Punchbowl News, Senate Democrats, including Adam Schiff and Ruben Gallego, called for protections in the Republican-led Responsible Financial Innovation Act (RFIA) that would impact how U.S. regulators and the government handle digital assets. Lawmakers were reportedly pushing for provisions that would ban public officials, including U.S. President Donald Trump, from profiting from any ties to crypto companies. As Gallego emphasized, “It’s a red line,” indicating the importance of establishing ethics guardrails in the bill.
The market structure bill, passed by the US House of Representatives as the CLARITY Act, has been discussed in the Senate since July. Amid debate over provisions such as managing potential conflicts of interest and decentralized finance, the bill also faced delays due to a 43-day government shutdown in October and November. The bill’s progress is being closely watched, with some organizations, like Stand With Crypto, placing market structure at the top of their 2026 agenda.
RFIA’s Top Supporter is Leaving the Senate in 2027
Senator Cynthia Lummis of Wyoming, one of the previous sponsors of the Market Structure Act and the legislative lead on the Senate Banking Committee, announced in December that she would not seek re-election in 2026. She will leave the Senate in January 2027. This development may impact the bill’s future, as Lummis has been a key supporter of the RFIA.
Source: Cynthia Lummis
Senate Banking Committee Chairman Tim Scott said this week that the panel would make an addendum to the RFIA. At the time of publication, there was no markup event on the committee’s public calendar or the Senate Agriculture Committee. The RFIA could give the U.S. Commodity Futures Trading Commission (CFTC) more power to regulate digital assets, but its fate remains uncertain.
Expert Insights and Next Steps
Experts speculate that the bill could find support, particularly among Democrats, in the 2026 midterm elections. However, the lack of clear regulations and potential conflicts of interest may hinder its progress. As the Senate continues to debate the bill, it is essential to consider the implications of crypto market structure on the industry and the economy as a whole.
For more information on the market structure bill and its potential impact on the crypto industry, visit Cointelegraph for the latest updates and expert analysis.
