Lummis-Backed Clarity Act Hits Snag Over Ethics Provision

The Clarity Act, landmark cryptocurrency legislation in the US Senate, is facing an uncertain future as Republicans and Democrats continue to disagree over key provisions. Hours ahead of a crucial vote on Monday night, Senate Democrats prepared a counteroffer that would change a contentious ethics provision.

The latest Republican version of the bill, led by Sen. Cynthia Lummis, gives state attorneys general leeway in enforcing ethics provisions by allowing them to sue crypto exchanges and the Justice Department. The bill also requires public officials to divest 'significant financial interest' or put those in a blind trust.

Democrats have pushed back on this provision, with Sen. Elizabeth Warren pointing out that it would not be enforceable due to the Justice Department's role in deciding whether to bring enforcement action against President Donald Trump. Lummis' spokesperson criticized Democrats' counteroffer, saying it looked 'identical' to their previous demands.

The Senate will take its first procedural vote on the Clarity Act on Tuesday and is unlikely to pass given its lack of Democratic support.