Lawmakers Reach Ethics Compromise on CLARITY Act, but Crypto Regulation Remains Uncertain
US lawmakers have reached a compromise on the senior-official ethics provision in the CLARITY Act, a bill aimed at regulating the crypto market. The provision has been a major sticking point, with concerns over potential conflicts of interest involving President Donald Trump's crypto businesses.
The ethics provision would restrict senior officials' ties to crypto projects. Republican Senator Thom Tillis and Democratic Senator Ruben Gallego have completed an initial revision of language to narrow the gap between the two sides.
However, other issues remain unresolved in the CLARITY Act, including illicit finance rules, protections for decentralized finance (DeFi) developers, and stablecoin reward programs. The industry is watching for possible action in September.