CLARITY Act Hits Roadblock in Senate as Democrats Push for Enforcement Power

The CLARITY Act is facing a critical test in the Senate before lawmakers leave for their August recess. While full passage this week was deemed unrealistic, starting floor votes could preserve a path to approval in September.

Cody Carbone, CEO of The Digital Chamber, emphasized that there are two main requirements dominating the negotiation process: Democrats want to grant enforcement power to state attorneys general and not just the US attorney general, while also requiring President Trump to sell his profits in cryptocurrencies.

The July 22 text prevents senior federal government officials and their spouses from issuing or sponsoring digital assets in exchange for remuneration. However, some Democrats consider this insufficient, and ethics have become more relevant than regulation debates for Carbone.