Democrats File Ethics-Focused Amendments to Crypto Market Structure Bill

Congressional Democrats on the House Financial Services Committee have filed a slate of ethics-focused amendments targeting potential conflicts of interest within the digital asset market structure bill currently under review. The legislation, which aims to establish clear regulatory jurisdiction for cryptocurrencies between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), is headed toward a critical markup session.

The primary focus of the Democratic amendments is the ‘revolving door’—the immediate transition of former federal regulators into high-paying roles within the industry they once oversaw. Lawmakers are seeking to impose stricter cooling-off periods for former SEC and CFTC employees, specifically those in senior positions, restricting their ability to lobby or advise crypto companies directly after leaving public service.

Proponents of the amendments argue that such measures are vital for maintaining public trust and preventing the perception that regulatory decisions are influenced by potential future industry employment. One proposed change would prohibit former officials from engaging in activities that capitalize on inside knowledge gained during their tenure for a significantly extended period, often years longer than existing federal ethics rules.

While the ethics concerns resonate across the aisle in principle, the amendments are expected to face political headwinds. Republicans supporting the underlying market structure bill view the additions as measures intended to complicate or slow down the foundational effort to bring regulatory clarity to the digital asset space. The outcome of the amendment votes will be a key indicator of bipartisan cooperation regarding the final shape of crypto regulation.

Source: Democrats file ethics-focused amendments to crypto market structure bill