Senate Proposes Revised Ethics Language for CLARITY Act

Senate negotiators have proposed revised ethics language for the CLARITY Act that would allow state authorities to enforce restrictions on federal officials' crypto activities, addressing Democratic concerns over leaving enforcement solely to the Department of Justice.

The reported changes come as Senate negotiators continue seeking enough Democratic support to advance the crypto market structure bill. Treasury Secretary Scott Bessent has urged the Senate to vote on the CLARITY Act before the August recess, warning that time is running out.

Republican Sen. Thom Tillis and Democratic Sen. Ruben Gallego have submitted a counterproposal to the White House that changes how the ethics provisions in the Digital Asset Market Clarity (CLARITY) Act would be enforced.