White House Stalls on Bipartisan Crypto Ethics Proposal
The White House is still reviewing a bipartisan proposal from Senators Ruben Gallego and Thom Tillis to resolve the ethics dispute surrounding the CLARITY Act, a crypto market structure bill. The proposal would allow state attorneys general to enforce certain crypto-related ethics rules instead of relying solely on the Justice Department.
Earlier this year, President Donald Trump approved an ethics framework negotiated with Senators Cynthia Lummis and Bernie Moreno as part of efforts to move the CLARITY Act forward. However, Democrats raised concerns about enforcement, arguing that the framework did not create sufficient safeguards.
The latest compromise would shift some enforcement authority to state attorneys general, allowing them to challenge potential failures by federal agencies to act on ethics violations. The White House has yet to respond to the proposal, which could determine whether lawmakers are able to advance the bill before its August deadline.