US Senate Blocks CLARITY Act Over Ethics Concerns
The US Senate failed to advance the Digital Asset Market Clarity Act on September 15 due to concerns about ethics and enforcement gaps. Senator Elissa Slotkin voted against the bill, citing 'weak ethics rules' and accusing President Trump and his family of making billions in crypto profits at the expense of everyday Americans.
The CLARITY Act aimed to divide oversight of digital assets between the SEC and CFTC, extend Bank Secrecy Act obligations to crypto intermediaries, and build on the stablecoin framework set out in last year's GENIUS Act. However, Slotkin argued that the ethics provisions were 'simply too thin' and that more work was needed to prevent money laundering and shut down funding avenues for terrorists.
Industry figures responded with mixed views. Some saw it as a delay rather than a defeat, while others warned that the US risked falling behind other jurisdictions in terms of regulatory clarity. The bill's fate remains uncertain, but November's midterm elections may decide its future.