Tillis-Gallego Revisions Bring Bipartisan Clarity to Crypto Ethics Bill

Senators Thom Tillis and Ruben Gallego have finalized revisions to the conflict-of-interest section of the Digital Asset Market Clarity Act. The bipartisan effort aims to tighten restrictions on senior federal officials' involvement with digital assets.

The revised language, which is not yet publicly available, is designed to impose stricter limits on how federal officials can interact with digital asset issuance. This comes after a White House-backed ethics proposal was released earlier this month, which drew criticism from Democrats over a 2029 sunset clause that would have let the restrictions expire.

The Digital Asset Market Clarity Act has broad goals, including splitting regulatory authority between the SEC and CFTC, creating clearer frameworks for spot markets in digital commodities, and addressing thorny issues like stablecoin yields and illicit finance. However, progress on the bill is stalled due to disagreements over the conflict-of-interest provisions.