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Ethics rewrite heads to White House
Two U.S. senators from opposite parties sent a proposed revision to the White House to change ethics provisions in the Digital Asset Market Clarity Act, or CLARITY Act, with the amendment transferring enforcement authority over a ban on federal officials issuing or sponsoring tokens from the U.S. attorney general to state authorities.
“The amendment would transfer enforcement authority over a ban on token issuance and sponsorship by federal officials from the U.S. attorney general to state authorities.”
The proposal was described in a report citing Punchbowl News as a counteroffer from Republican Senator Thom Tillis and Democratic Senator Ruben Gallego, and it was framed as a compromise after criticism that the original draft concentrated too much power.
The bill’s path depends on Senate arithmetic, with Republicans holding 52 seats and Democrats holding 47, and the CLARITY Act needing 60 votes to pass.
In the same reporting thread, Gallego was quoted saying provisions on ethics, consumer protection, illicit finance, conflicts of interest and market integrity “must be strengthened,” while the TradingView account said the revised approach would allow state authorities to enforce the token ban rather than the U.S. Attorney General.
Bessent pushes for a vote
U.S. Treasury Secretary Scott Bessent urged senators to vote immediately on the CLARITY Act, increasing pressure as lawmakers faced a narrowing calendar before the August recess.
Bessent demanded that the Senate vote “NOW” on the CLARITY Act, and he accused Democrats of resisting the legislation because they fear opposition from Sen. Elizabeth Warren and what he described as her “anti-crypto army.”
The dispute over ethics enforcement remained central, with some Democrats objecting to language that gives the Department of Justice sole authority to enforce the ethics provisions and instead wanting state attorneys general and other prosecutors to have enforcement powers.
The same reporting said Republicans hold 53 Senate seats but would likely need support from at least seven Democrats to clear the chamber’s 60-vote threshold, while the House passed its version in July 2025 by a 294–134 vote, including support from 78 Democrats.
Odds, deadlines, and what’s at risk
As the Senate weighed whether to move toward a floor vote before the August recess, prediction-market odds for passage fell, with Polymarket pricing “Clarity Act signed into law in 2026” at 27% on July 29.
“Polymarket prediction market shows that “Clarity Act signed into law in 2026” has plunged to 27% on July 29.”
CoinGape said the odds dropped after the Senate put the crypto bill on hold to prioritize voting on a Russia sanctions bill and federal nominations, while senators finalized a bipartisan ethics counteroffer to send to the White House “in the next couple days.”
The stakes were described as regulatory certainty for digital-asset markets, with the bill intended to establish a comprehensive federal framework and divide oversight responsibilities between the SEC and CFTC while setting federal requirements for digital-asset intermediaries.
A separate report said JPMorgan warned that declining odds for Senate approval this year remove a key catalyst for digital-asset markets, and it cited prediction markets implying only a 37% probability the legislation would be approved before the end of the year.
