The landmark legislation, known as the Clarity Act, stalled in the Senate as Democrats raised concerns about President Trump’s personal investments in crypto.

Federal prosecutors said proceeds from the sale of Iranian oil flowed through Binance, the world’s largest crypto exchange, to finance terrorism.

Democrats and Republicans are haggling about the Clarity Act, a major bill pushed by the crypto industry, as it moves closer to a Senate vote.

Mr. Bankman-Fried is serving a 25-year prison sentence for fraud related to the collapse of his cryptocurrency exchange, FTX.