Crypto lobbyist dismisses ethics safeguards, risking a bipartisan market bill

The top lobbyist for the Blockchain Association told lawmakers this week that ethical safeguards in crypto market structure are “really not our concern” – a statement that risks splintering a bipartisan bill years in the making.

Speaking during a Capitol Hill roundtable, the CEO argued that inserting ethics provisions as a deal-breaker would stall legislation that already has broad support. A former CFTC commissioner backed that view, urging Congress not to “kill all the hard work that we put in the rest of the bill” by making ethics a make-or-issue point.

The bill in question aims to create a federal framework for digital asset trading, custody, and exchange registration. It has emerged as the industry’s top legislative priority this session, uniting crypto firms across the political spectrum. But ethics questions – revolving around insider trading, market manipulation, and conflicts of interest – have become a sticking point for some Democrats and consumer advocates.

The Blockchain Association CEO’s blunt dismissal caught the attention of several aides in the room. Critics say the remark confirms that the industry prioritizes speed over integrity. “They don’t want guardrails,” one staffer told CoinTelegraph on condition of anonymity. “They want the bill to pass, and they’ll fight any language that slows it down.”

Supporters of the measure counter that existing securities and commodities laws already address bad actors. Layering additional ethics rules on top of a new crypto-specific regime, they argue, would create regulatory overlap and push startups offshore. The former CFTC commissioner echoed that sentiment, calling the bill a delicate compromise that took years to negotiate.

Market reaction has been muted so far, but traders are watching closely. A breakdown in the horse-trade could delay any US crypto rulebook until after the midterms – or kill it entirely. The Blockchain Association’s stance effectively draws a line in the sand, daring lawmakers to choose between a clean bill and a dead one.

What to watch: the next working group session, expected within two weeks. Industry sources say ethics language will likely be narrowed, not removed. If the coalition holds, the bill could reach the floor by autumn. If it fractures, the sector loses its best chance at federal clarity for years.