The Republican-led Senate Banking Committee has advanced long-awaited legislation that would establish a regulatory framework for cryptocurrencies. The bill, which received support from two Democrats, will now go before the full Senate, where a significant lobbying battle is expected.
Several Democratic members raised concerns about the bill, arguing that its anti-money laundering provisions are insufficiently strong and that it should prohibit political officials from profiting from crypto ventures. The crypto industry has lobbied heavily for the legislation, contending it is essential for the future of digital assets in the United States. Among its provisions, the bill would define the circumstances under which crypto tokens are classified as securities, commodities, or other instruments, offering the industry the legal clarity it says is needed to drive broader adoption.
A federal judge has declined to immediately approve a $1.5 million settlement between Elon Musk and the Securities and Exchange Commission, saying aspects of the agreement raise concerns. US District Judge Sparkle Sooknanan stated she would not "rubber stamp" the deal and indicated she wants both parties to submit further briefings before she reaches a decision. The settlement relates to a lawsuit over Musk's disclosures of his Twitter stock holdings.
The agreement was reached between the White House and Musk's trust earlier this month. Judge Sooknanan also raised the possibility that Musk may have been seeking to avoid a formal court finding against him. The settlement comes amid a broader pattern of leniency from the SEC toward figures and businesses connected to President Donald Trump, including the dismissal of cases against crypto exchanges Coinbase and Kraken, both of which donated to the Trump campaign.