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CLARITY Act ethics fight
Senate Republicans released updated text for the Digital Asset Market Clarity Act on July 22, and Democrats objected that the ethics provisions still do not go far enough to address President Donald Trump’s cryptocurrency business interests.
“Skip to content Cryptocurrency The CLARITY Act Is Now One Clause Away From Passing: Should XRP Holders Celebrate”
Bloomingbit reported that the current draft would bar public officials and their spouses from issuing or sponsoring digital assets, but would not cover other family members, and it would end the restrictions in January 2029.
CoinDesk said the contentious section banning crypto conflicts for the president is included in the latest draft but may only be a temporary measure, with the ethics rule set to conclude in 2029 and enforcement left to the Department of Justice.
The Defiant reported that the dispute most likely to determine whether the bill reaches 60 votes before the August recess centers on policing crypto conflicts of interest among government officials, with the Senate Banking Digital Assets Subcommittee Chair Cynthia Lummis urging a vote.
Politico said the 616-page draft includes a White House-approved ethics provision enforceable by the Department of Justice, and it said Democrats have signaled the provision may not go far enough to win their support.
DOJ enforcement rejected
Democrats’ central objection is that DOJ-led enforcement would not satisfy their concerns about conflicts of interest, and CoinDesk quoted Senator Angela Alsobrooks saying, "This DOJ enforcing an ethics provision? That's an unserious offer."
Politico likewise quoted Alsobrooks saying, "I wouldn't support the bill if that’s the language," while also saying she would keep working from the floor to reach an agreement that holds everyone accountable.
The Defiant described the crypto industry’s push for a Senate vote as it urged lawmakers to move quickly after Republicans released the updated text, and it quoted Alsobrooks calling the DOJ-led ethics enforcement "wild and unserious and stone-cold crazy."
American Banker said the ethics provision would ban all elected officials, including the president, from issuing digital assets, but it would leave enforcement in the hands of the Department of Justice, which Democrats are unlikely to accept.
CoinDesk reported that the Senate would need at least 10 Democrats to approve the final bill because of the chamber’s requirement for 60 yes votes, and it said many of them already did not like what they were hearing on the ethics section.
Timing and what’s at risk
The Defiant said the Senate leaves for its summer recess in roughly two weeks and that the first week of August is widely viewed as the last window for passage this year, with lawmakers focused on midterm elections after September.
Politico reported that Senate Majority Leader John Thune said he hopes to put the landmark cryptocurrency bill on the floor next week, and it quoted him saying, "Hopefully."
American Banker said the stablecoin yield provision remains unchanged from what previously passed the Senate Banking Committee, and it described the newer version as including an ethics agreement between Senate Republicans and the White House that falls short of what Democrats have said they need.
CoinDesk reported that key Democratic lawmakers said the Republican-proposed text "falls short" and that provisions addressing ethics for elected officials, consumer protection, illicit finance, conflicts of interest and market integrity must be strengthened.
Bloomingbit reported that the CLARITY Act needs 60 votes to pass the Senate, making Democratic support essential, and it said if lawmakers fail to resolve their differences over the ethics provisions, the bill could face a difficult path in the chamber.
