CLARITY Act Stalls in Senate as Democrats Reject Ethics Provision

The CLARITY Act, a comprehensive crypto regulation bill, has stalled in the Senate due to a disagreement over ethics language.

The bill, which passed the House with a 294-134 vote and cleared the Senate Banking Committee with a bipartisan 15-9 vote, requires at least seven Democratic votes to clear the 60-vote filibuster threshold.

Senate Democrats have rejected the ethics clause, calling it 'theatrical' and criticizing its sunset provision, which would grant retroactive immunity after Trump leaves office on January 20, 2029.

The provision bars federal public officials and their spouses from issuing or sponsoring new digital assets while in office, but allows pre-existing holdings to remain compliant by placing them in a qualified blind trust or divesting them.