Tillis-Gallego Revision Tightens Conflict-of-Interest Rules for Federal Officials in Crypto Bill

Two senators from opposite sides of the aisle have finalized revisions to one of the most sensitive sections of the Clarity Act, a landmark crypto bill in Congress. The Digital Asset Market Clarity Act aims to regulate digital assets and clarify jurisdictional lines between the SEC and CFTC.

Senators Thom Tillis (R-NC) and Ruben Gallego (D-AZ) completed their bipartisan revision to the conflict-of-interest provisions on July 29. The revised language tightens restrictions on senior federal officials' involvement with digital assets, countering a White House-backed ethics proposal.

The underlying bill seeks to split regulatory authority between the SEC and CFTC, create clearer frameworks for spot markets in digital commodities, and address issues like stablecoin yields and illicit finance. However, Congressional progress has been slow due to disagreements over conflict-of-interest guardrails.