CLARITY Act Stalls in Senate as Ethics Disagreements Hold Up Passage
The CLARITY Act's fate in the US Senate is uncertain as its passage this week was deemed unrealistic by Cody Carbone, CEO of The Digital Chamber.
The bill, which aims to create a landmark regulatory framework for digital assets and could establish the US as a leader in this policy area, has stalled due to disagreements over ethics language. Specifically, Democrats want to include provisions that would limit President Trump's ability to profit from crypto by divesting any money he's made from it.
The bill itself is 616 pages long, but Carbone believes the underlying legislation goes far beyond this single issue of ethics. He noted that actual passage of the CLARITY Act this week was never realistic due to procedural votes and debates required before it can move forward.
The Senate has a narrow window to act on the bill, with September offering only three weeks of session before an election and lame duck period make further action unlikely. Carbone said he'd be shocked if the August recess is canceled, as senators from both parties need to campaign during this time.