COIN

United

2026

<p>The American crypto law that was supposed to finally “put things in order” today looks like a rocket ready to launch… with a stuck pin. This pin is an ethics clause. And it might be enough to derail the whole rest. In short: Democratic senators demand safeguards against conflicts of interest. Without that, they threaten to withdraw their votes. Ruben Gallego even talks about a “red line”.</p> 
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  <h2 class="in-brief--title" id="in-brief">In brief</h2> 
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    <li>In the United States, Democratic senators are demanding ethical safeguards in the crypto market structure bill, or they’ll pull their votes.</li> 
    <li>They want to prevent public officials from financially benefiting from ties to the industry—what they call a “red line.”</li> 
    <li>Without this addition, the bill could stall in the Senate and further delay the major regulatory clarity the sector has been waiting for.</li> 
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<h2 id="h-the-small-line-that-annoys-ethics-before-technology">The small line that annoys: ethics before technology</h2> 
<p>On paper, the project seems technical: defining who regulates what, and giving more clarity to the <strong>crypto</strong> market. But the battle has moved elsewhere: <strong>who benefits from the law</strong> while it is being written.</p>
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<p>The core of the blockage is simple to understand. Democrats want to prevent public officials, including the president, from <strong>deriving direct or indirect benefit</strong> from ties with crypto companies or projects affected by the future regulation. Not to mention that <a href="https://www.cointribune.com/en/u-s-crypto-policy-may-stall-after-2026-midterms/" target="_blank" rel="noreferrer noopener">the 2026 US midterm elections could block Trump’s agenda</a>.</p> 
<p>This is not a whim that came from nowhere. <a href="https://www.schiff.senate.gov/news/press-releases/news-sen-schiff-introduces-legislation-to-prevent-financial-exploitation-of-digital-assets-by-the-president-first-family-public-officials/" target="_blank" rel="noreferrer noopener">Adam Schiff</a> had already introduced in 2025 a proposal dedicated to these issues (the <strong>COIN Act</strong>) to limit “financial exploitation” of digital assets by officials and their close ones. The idea: to cut short the temptation of “I legislate, I earn.” And this is where it gets explosive. Because a market law, without political trust, is just a well-formatted draft.</p> 
<h2 id="why-this-loophole-could-bring-down-the-whole-castle">Why this loophole could bring down the whole castle</h2> 
<p>We are talking here about a “crypto market structure” text, in other words the framework: classification, supervision, responsibilities. The House has already made progress by adopting the <strong>Digital Asset Market Clarity Act (<a href="https://www.cointribune.com/en/clarity-act-could-reshape-u-s-crypto-regulation-in-2026/" target="_blank" rel="noreferrer noopener">CLARITY Act)</a></strong> on <strong>July 17, 2025</strong> (294–134), then the text was received in the Senate on <strong>September 18, 2025</strong>.</p> 
<p>However, in the Senate, the schedule has been disrupted by pure politics. Discussions suffered the shock of a <strong>43-day federal shutdown</strong> in the fall of 2025, which slowed or froze a lot of legislative work.</p> 
<p>Today, the chairman of the Senate Banking Committee, Tim Scott, mentioned a <strong>markup</strong> (the step where amendments are made and voted in committee). But there was public confusion about the scheduling at the time of the initial statements.<br>Translation in Washington language: if the majority wants to move fast, it must secure votes. And if some Democrats say “no ethics clause, no vote”, everything can block again.</p> 
<p>The most ironic thing is that this ethics battle is not a “moral bonus.” For <strong>crypto</strong>, it is almost the main topic.</p> 
<h2 id="what-crypto-really-risks-a-law-then-a-permanent-suspicion">What crypto really risks: a law, then a permanent suspicion</h2> 
<p>The <strong>crypto</strong> sector has been demanding regulatory clarity for years. But a law passed with the scent of conflict of interest attached to the paper is a poisoned gift. Because it becomes attackable: politically, in the media, legally.</p> 
<p>It is also a matter of lifespan. The American crypto texts are already subject to electoral weather. Add to that a symbolic element: Cynthia Lummis, a pro-crypto figure and historic supporter of the approach, is not running again and <a href="https://www.cointribune.com/en/cynthia-lummis-retires-from-the-senate-the-crypto-industry-loses-a-major-ally/" target="_blank" rel="noreferrer noopener">will leave the Senate in <strong>January 2027</strong></a>. The political backing can therefore change hands, thus the tone.</p>
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<p>Finally, this “loophole” reveals a truth many refuse to face: <strong>crypto</strong> does not only have a rules problem. It has a narrative problem. When the general public believes the game is rigged, they don’t read legal definitions. They disengage.</p> 
<p>If Congress wants a law that holds up, it will have to decide: either ethics remains a convenient blind spot, or it becomes the seatbelt of the text, the one that prevents it from exploding at the first political turbulence.</p> 
<p>And while Washington debates safeguards, France reminds of another, more down-to-earth reality: trust is not only lost in legislative chambers. <a href="https://www.cointribune.com/en/france-crypto-holders-at-risk-after-exposure-of-sensitive-information/" target="_blank" rel="noreferrer noopener">Tax authorities may have compromised the confidentiality of some crypto holders</a>, and such suspicion is enough to chill an entire market.</p>

This loophole in the US crypto law could derail everything

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