Trump Compromise Falls Short as State AGs Oppose CLARITY Act Ahead of Senate Vote
The CLARITY Act is set to face a crucial Senate procedural vote on Tuesday after President Donald Trump agreed to most of a bipartisan proposal to strengthen ethics restrictions around public officials' crypto interests.
According to various reports, the compromise addresses some concerns raised by Democrats and Republican Senator Thom Tillis, who argued that earlier ethics provisions did not go far enough to address potential conflicts involving Trump's crypto holdings and business interests.
The revised bill would require officials with a significant financial interest in a crypto issuer to divest or place the interest in a blind trust. State attorneys general would also be given a role in enforcing the restrictions.
However, the opposition from a bipartisan group of 18 state attorneys general has added another complication for the legislation. They argued that the CLARITY Act would weaken their authority to police the crypto industry and make it harder for states to take action against crypto companies accused of fraud or other misconduct.