US Digital Asset Market Clarity Act Stalls Over Ethics Disagreements

The US Digital Asset Market Clarity Act (CLARITY) has stalled over a disagreement on ethics provisions. Despite months of negotiations, lawmakers are divided on who should enforce these rules and how strong they should be.

Democrats argue that the current proposal relies too heavily on the Department of Justice (DOJ), and state attorneys general should be able to step in if the DOJ fails to enforce the law. Republicans, however, want to keep enforcement with the DOJ, arguing for a single national framework.

The proposed ethics provisions would prohibit federal officials from issuing or sponsoring digital assets while in office. They would also prevent crypto platforms from listing these assets. The restrictions would expire in 2029.

Senator Angela Alsobrooks said that while she has been supportive of the bill, she will not support it without stronger ethics language and enforcement mechanisms. She emphasized the importance of addressing potential conflicts of interest.