Lummis Signals More Debate Over Ethics Provisions in US Crypto Bill

The US crypto bill, known as the Clarity Act, has hit another roadblock in its journey to become law. Senator Cynthia Lummis, a key architect of the legislation, stated that while she is pleased with the updated version of the bill, ethics and other provisions still require further debate.

Lummis's comment suggests that despite months of negotiations, significant disagreements remain on how to regulate digital assets in the US. The Clarity Act aims to define which tokens are securities versus commodities, set registration paths for exchanges, and establish consumer protections.

The bill's journey has been marked by stop-start momentum over three years, with every attempt at consensus being thwarted by new demands. Ethics provisions have now emerged as a major sticking point, with Congressional aides pointing to disclosure requirements for officials holding digital assets and rules around token holdings by lawmakers who sit on committees overseeing the industry.

Crypto lobbying, which has ramped up its Washington offices in recent years, is particularly affected by these uncertainties. Exchanges and protocol teams are finding it challenging to plan their compliance and hiring strategies due to the lack of clear rules.