Lead Senate Republican Lummis rejects Democratic counteroffer as Clarity Act vote nears

Hours ahead of an initial vote on landmark cryptocurrency legislation, Senate Republicans are pushing back against a counterproposal from fellow Democrats, leaving the bill in limbo.

On Monday night, Senate Democrats prepared the counteroffer, asking to change a hotly contested ethics provision to address President Donald Trump's growing crypto profits, according to Politico. This comes after Senate Republicans, led by Sen. Cynthia Lummis, released their "final" Clarity Act draft on Sunday night.

The latest Republican version gives state attorneys general some leeway in enforcing the ethics provisions by allowing them to sue crypto exchanges and the Justice Department, and says that public officials have to divest "significant financial interest" or put those in a blind trust.

Democrats have since pushed back on that, with Sen. Elizabeth Warren pointing to loopholes that would prevent Trump from making even more money in crypto because the ethics piece is not enforceable given that the Justice Department would decide whether to bring an enforcement action against him.

On Tuesday morning, Lummis' spokesperson Katie Warbinton criticized Democrats' latest proposal and said it looked "identical" to their position weeks ago.

"If Democrats are serious about reaching a deal, they need to actually start negotiating instead of resubmitting the same demands and calling it progress," Warbinton said in a statement to The Block. Punchbowl News earlier reported the news.

In response, Sen. Mark Warner, D-Va., told Semafor that Democrats' counteroffer shouldn't be a surprise.

"This is language Democrats have been seeking for the better part of a year," he told Semafor.

Later on Tuesday, the Senate will take its first procedural vote on the Clarity Act and seems unlikely to make it through that first hurdle given its lack of Democratic support. If passed, the Senate would have to vote again to pass it through its chamber before it goes to the House and then to Trump's desk.