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Ethics fight stalls CLARITY
The CLARITY Act, a U.S. crypto market structure bill, remains at “the mercy of ethics section” as Democrats balk at a Trump deal and debate how a ban on government officials’ significant crypto ties will be enforced.
CoinDesk reported that the deepest point of disagreement is “who will enforce the ban,” with Democrats favoring state attorneys general while the White House and Republicans insist on the U.S. attorney general as the top authority.
CoinDesk also said the compromise would be expected to include “the president, vice president and all members of Congress,” and that August 7 is seen as a major deadline before the Senate’s summer recess.
The same CoinDesk account said the White House argues it “bent over backward” to satisfy Democrats, while the bill’s advancement depends on resolving the ethics enforcement language.
CoinDesk further reported that the House would likely consider the bill again when it returns to session in September, after any Senate passage.
White House text and delays
Cryptonews.net said a critical hurdle was overcome after the White House reportedly approved ethics clauses for the CLARITY Act, with the agreement framed as a milestone before the Senate vote.
Cryptonews.net attributed the development to Eleanor Terrett, writing that “the White House has agreed on an ethics package for the Clarity Act and sent the text to select Senate Republicans this afternoon.”
The same report added that “the release of the text may be delayed for a few more days,” citing The Block and describing the delay as creating more time for negotiations.
Bitcoin Foundation similarly stated that “President Trump has approved the inclusion of ethics provisions in the CLARITY Act,” and said the amendment text had been shared with some Republican senators.
Bitcoin Foundation also said final passage requires 60 Senate votes and that if the Senate votes before the August recess, the bill could pass this year, otherwise it would be delayed until November due to the midterm elections.
Corruption stakes and oversight
Rolling Stone argued that Congress is considering the CLARITY Act as “an even more consequential proposal,” warning it would shift much of crypto oversight to “a weaker regulatory body.”
Rolling Stone said critics warn the shift would “create regulatory loopholes” and further open the door to corruption, while “ordinary Americans bear the risks” from crypto “fraud, scams, and market collapses.”
The Rolling Stone piece also cited Trump’s financial disclosure, saying he “earned more than $1.4 billion from crypto ventures last year,” and framed his ties as part of a broader corruption fight.
In parallel, CoinDesk reported that the ethics enforcement dispute centers on whether state attorneys general or the U.S. attorney general should be able to enforce the restriction on federal officials.
CoinDesk also said the bill’s advancement has depended on a compromise on the ethics restriction, with other loose ends including “the treatment of developers” in the illicit-finance safeguards.
