Senate Blocks Conflict-of-Interest Crypto Measure in 54-46 Vote

The U.S. Senate voted 54-46 to reject an amendment to Trump's “One Big Beautiful Bill” that would have prevented elected officials from using cryptocurrency holdings for personal gain.

Senator Jeff Merkley introduced the amendment to extend existing ethics rules to digital assets. The proposal would have banned public servants from profiting and promoting cryptocurrencies in which they have a financial interest, required more stringent and timely disclosure of crypto holdings by officials and their immediate families, and imposed trading restrictions on officials while in office.

The amendment targeted conflicts of interest where lawmakers could use their positions or inside information to increase the value of digital assets in their portfolios. Current Senate ethics rules require disclosure of stock and bond holdings but do not address cryptocurrency.

Critics said the proposal could overregulate the crypto industry. They argued that existing ethics laws already cover financial conflicts regardless of asset type. It was primarily opposed by Republican senators, including Cynthia Lummis, who said that the proposal “goes too far” by applying restrictions on the family members of officials. They warned that strict crypto rules could hurt innovation and create costly regulatory burdens for the developing sector.

Some senators also raised free speech concerns about restricting officials' ability to discuss any asset. Others pointed to the technical complexity of cryptocurrencies as making precise legislation difficult. Supporters plan to reintroduce similar measures in future sessions with revised language to address concerns and gain broader support.

Public office should never be a vehicle for personal financial enrichment, especially not through speculative and often opaque markets like cryptocurrency,

Senator Merkley said.

The rejection leaves lawmakers without specific guidelines for crypto holdings. Unlike traditional assets with established oversight frameworks, cryptocurrencies present unique challenges due to their decentralized nature, price volatility, and unclear ownership structures.

Transparency watchdog groups said they will increase monitoring of elected officials' crypto disclosures and public statements following the amendment's defeat. Industry groups indicated interest in creating self-regulatory standards to demonstrate ethical commitments and build trust in decentralized finance.

The vote reflects ongoing tensions in Congress over balancing innovation in digital finance with ethical oversight. Lawmakers have yet to establish comprehensive digital asset standards despite the growing mainstream adoption of cryptocurrencies.