Clarity Act Update Hits Roadblock Over Ethics Provisions

The Clarity Act update remains uncertain as Senate leaders approach their final legislative days before the August recess. Lawmakers continue to negotiate bipartisan support, but ethics provisions remain the biggest hurdle.

Senate Majority Leader John Thune had not filed cloture on the bill as of August 5, and without a filing, no procedural vote has been scheduled. The White House's silence on a revised bipartisan ethics proposal is also contributing to the uncertainty.

Several Democrats have stated they will not support the legislation unless stronger restrictions are placed on elected officials' crypto interests. Senator Cynthia Lummis said lawmakers must now make a clear decision, either supporting legislation with additional law enforcement, decentralized finance, and ethics protections or explaining why agreement remains out of reach.