Senate Democrats Block CLARITY Act Over Ethics Provision

The CLARITY Act, a sweeping crypto regulation bill, has stalled in the Senate due to ethics concerns raised by seven Democratic senators.

The bill aims to establish clear rules for cryptocurrencies in America, but the provision related to ethics has sparked controversy.

The provision bars federal public officials and their spouses from issuing or sponsoring new digital assets while in office, but critics argue it only affects new issuances, allowing existing income streams to remain untouched.

Sen. Cynthia Lummis (R-Wyo.) released the revised 616-page CLARITY Act text on July 22, 2026, which includes the provision.

The Senate Democrats are advocating for state attorneys general to have enforcement authority, a demand Republicans oppose.