Senate Races to Pass CLARITY Act Before Recess
Lawmakers are negotiating a last-minute ethics compromise to unlock votes on the landmark crypto market structure bill.
The update
Two U.S. senators are racing against the clock to finalize a revised ethics provision for the Digital Asset Market Clarity (CLARITY) Act before the Senate breaks for a month-long recess. The bipartisan duo, Senator Thom Tillis and Senator Ruben Gallego, reportedly sent a counteroffer to the White House that would shift enforcement authority for a ban on federal officials issuing or sponsoring tokens from the U.S. Attorney General to state authorities. This change is intended to address concerns from Senate Democrats who have previously signaled they would block the bill if it does not sufficiently constrain conflicts of interest.
Why it matters
The CLARITY Act represents the most significant effort to establish a clear regulatory framework for cryptocurrency in the U.S. The bill faces a high threshold of 60 votes to pass the Senate, requiring support from both parties. The current deadlock over ethics rules has stalled progress, as Democrats have criticized the initial White House-approved language for being too lenient toward President Donald Trump’s business interests. Without a compromise, the bill risks dying in committee before the August recess.
What to watch
Watch for the White House’s response to the senators’ revised proposal and the reaction from Senate Democrats. The bill’s fate now hinges on whether the new language satisfies enough opposition lawmakers to clear the 60-vote hurdle. If the bill fails to pass before the recess, it could be delayed until after the November elections.
Sources
- cointelegraph.com — Context on the month-long recess deadline and the 60-vote threshold requirement.
- coindesk.com — Details on the senators' role and the specific enforcement shift (AG to state authorities).