Senate Crypto Bill Stalls Over Ethics Debate
The Senate's push to advance the Clarity Act has hit another snag due to disagreements over ethics language related to President Donald Trump's potential financial gains from crypto ventures.
Lawmakers remain divided on proposals that would bar senior federal officials, including the president, from issuing or sponsoring digital assets while in office. The proposed language also gives the Department of Justice exclusive authority to enforce these rules.
Democrats have rejected this language, citing concerns over enforcement and arguing that state attorneys general should have a role in enforcing ethics standards.
Senators Ruben Gallego and Thom Tillis are working on a revised proposal, with Gallego stating that negotiations broke down due to disagreements over who should enforce these rules. The unresolved ethics debate has put the outlook for crypto legislation in jeopardy, with Senate Majority Leader John Thune indicating that he no longer expects the chamber to pass the bill before the August recess.
Lummis praised the proposal as embracing ethics standards that exceed existing legal requirements and represent the toughest rules ever applied to the presidency. However, Gallego described the proposal as inadequate, arguing that it failed to reflect the work done by Democrats and Republicans on this issue.