CLARITY Act Passage Hinges on Resolving Ethics Dispute

The fate of the CLARITY Act, a bipartisan bill aimed at regulating the crypto industry, hangs in the balance as it faces an ethics dispute that could delay its passage until after the August recess.

The Senate has yet to schedule a vote on the bill, which would establish long-awaited rules for digital asset markets. The holdup stems from disagreements over how to enforce ethics provisions, with Democrats seeking a way to allow state attorneys general to challenge DOJ inaction.

Coinbase CEO Brian Armstrong has urged lawmakers to support the bill, describing it as a bipartisan effort that would bring much-needed clarity to regulating the crypto industry. He noted that 70% of Americans want clear crypto rules and that the bill includes new authorities for banks to integrate stablecoins and crypto.