CLARITY Act Heads for Senate Vote Amid Controversy Over Revised Ethics Language

The CLARITY Act is moving closer to a Senate vote after Democrats sent Republicans their counterproposal on Monday.

The bill's revised ethics language has been a major point of contention, with concerns raised about a provision that could allow senior government officials to keep their existing crypto business connections.

Senator Cynthia Lummis, one of the Republicans leading the negotiations, said Democrats were continuing to seek additional concessions, but maintained that the legislation was still ready to move to a vote.

The White House has defended the latest version of the bill, with Patrick Witt, the White House's top crypto advisor, saying it addresses concerns that emerged during negotiations and expressing confidence in securing 60 votes.

However, banking groups and states have raised alarms about changes to several provisions, including rules for stablecoin rewards and federal preemption. Eight trade associations sent their concerns to Senate leaders John Thune and Chuck Schumer on Monday, while New York Attorney General Letitia James and 17 other attorneys general urged senators to reject the legislation.