US Senate Tightens Conflict of Interest Rules for Federal Officials in Crypto Bill

The US Senate has made critical revisions to the conflict of interest section in the CLARITY Act, a bipartisan bill aimed at regulating the cryptocurrency market. The revised text, drafted by Republican Senator Thom Tillis and Democratic Senator Ruben Gallego, is an alternative to the ethics code endorsed by the White House on July 22.

The previous proposal had been criticized for being insufficiently restrictive, with some restrictions set to expire in 2029. In contrast, the revised text is expected to impose stricter rules that limit federal officials from issuing digital assets or directly participating in such projects.

Key objectives of the CLARITY Act include clarifying the boundaries of jurisdiction between the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, establishing clear rules for spot digital commodity markets, and reducing regulatory uncertainty in the crypto sector.

Senate Majority Leader John Thune announced that a procedural vote on the bill could take place between July 29 and August 1, but expressed doubts about whether the entire bill could pass the Senate before the August recess.