Consumer and Advocacy Groups Push Back Against Senate Crypto Regulation Bill

Consumer advocates, financial-reform organizations, and several major unions are voicing strong opposition to the Senate’s emerging legislation aimed at regulating the U.S. cryptocurrency market. Nearly 200 groups — including Better Markets, Public Citizen, Americans for Financial Reform, and the Communications Workers of America — signed a letter warning that the current proposals fail to protect crypto consumers from widespread fraud and industry abuses. Their message to lawmakers emphasizes that any bill moving forward must address the risks and harms the crypto sector has already posed to U.S. investors.

The Senate continues to craft its own version of crypto regulation, building on the House-passed Digital Asset Market Clarity Act but taking different policy approaches. Negotiations have been happening behind closed doors, with Senator Cynthia Lummis suggesting a formal markup could come as early as next week. However, key disagreements remain — particularly among Democrats concerned about potential conflicts of interest involving government officials who hold crypto investments, including former President Donald Trump. Progressive groups argue that legislation must directly confront these ethical issues to avoid undermining public trust.

Environmental organizations such as Greenpeace and the Center for Biological Diversity also joined the opposition, an unusual move that underscores the growing cross-sector resistance to the bill. At the same time, a divide within the Democratic Party is widening. Senator Elizabeth Warren and other progressive lawmakers argue that the legislation puts retirement savings and broader economic stability at risk. The American Federation of Teachers warned that the bill could weaken existing safeguards for both crypto assets and traditional securities, jeopardizing workers’ pension funds.

Despite the resistance, Congress has shown bipartisan willingness to act on digital-asset policy, recently passing stablecoin legislation. Still, critics say the Senate’s current path could erode investor protections at a time when stronger crypto oversight is needed.