Senate Democrats Stalling CLARITY Act Amid Ethics Disagreements

US Treasury Secretary Scott Bessent has accused Senate Democrats of delaying the passage of the Digital Asset Market CLARITY Act. The bill, which would establish a comprehensive federal framework governing digital asset markets, is reportedly close to completion but remains stalled due to disagreements over ethics and consumer protection provisions.

Bessent said that only a handful of outstanding issues remain before a Senate vote can take place, comparing the situation to being at the '1-yard line' in American football. He urged lawmakers to move quickly, warning that prolonged uncertainty risks undermining the United States' competitiveness in digital assets and financial innovation.

The CLARITY Act would divide oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission while creating clearer rules for exchanges, brokers, and token issuers. Bessent has repeatedly argued that the legislation is necessary to bring crypto innovation back to the United States after years of regulatory uncertainty encouraged companies to expand overseas.

Democratic negotiators reject the suggestion that they alone are responsible for the delay, arguing that the current Republican draft 'falls short' and must be strengthened before they could support it. The senators identified five major areas requiring further work: ethics rules for elected officials, consumer protection, illicit finance, conflicts of interest, and market integrity.