US Senators Reach Clarity Act Ethics Compromise, But Passage Uncertain

A bipartisan group of US senators has reached a compromise on ethics provisions in the Clarity Act, a cryptocurrency market-structure bill. The bill aims to divide regulatory authority over cryptocurrencies between the US Securities and Exchange Commission and the Commodity Futures Trading Commission.

The compromise, brokered by Republican Senator Thom Tillis and Democratic Senator Ruben Gallego, addresses concerns over conflict-of-interest issues involving senior government officials in cryptocurrency businesses.

Democrats have been pushing for stronger ethics rules, citing a meme coin introduced by US President Donald Trump before taking office and World Liberty Financial (WLFI), in which the Trump family was involved. Asset disclosure documents released last month showed that Trump received millions of dollars through cryptocurrency businesses.

The revised draft approved by Trump barred public officials and their spouses from issuing and backing cryptocurrencies, but did not apply to other family members. It granted enforcement authority to the US Department of Justice and included a sunset clause that could effectively nullify the entire ethics framework.