Clarity Act Hits Roadblock as Ethics Concerns and Legislative Calendar Constrain

The Clarity Act, a sweeping bill aimed at regulating US crypto markets, is in trouble as it faces an ethics hurdle and a tight legislative calendar.

Senate Majority Leader John Thune said on Thursday that he doesn't expect the bill to clear the chamber before lawmakers take their August recess, citing concerns over ethics and time constraints.

The latest draft of the bill, released by Republicans, has been met with resistance from Democrats who argue it doesn't address key issues such as conflicts of interest among public officials. The bill would bar federal officials from issuing or sponsoring digital assets, but enforcement would be left solely to the Justice Department.

Crypto trade groups are urging leadership to start floor consideration of the bill despite ongoing negotiations, arguing that there is no substitute for durable market-structure law.