US Senators Sent Revised Ethics Rules to White House for CLARITY Act

Summary

Two U.S. senators from different political parties, Thom Tillis (Republican) and Ruben Gallego (Democrat), have sent revised ethics guidelines to the White House as part of ongoing negotiations over the Digital Asset Market Clarity (CLARITY) Act, a proposed cryptocurrency market structure bill. Their counteroffer reportedly includes changes to ethics provisions addressing concerns raised by many lawmakers in the initial draft. Notably, the revisions would allow state authorities, rather than solely the U.S. Attorney General, to enforce a ban on federal officials issuing or sponsoring tokens.

Senator Gallego has emphasized the need to strengthen provisions related to ethics, consumer protection, illicit finance, conflicts of interest, and market integrity in the bill. He indicated a willingness to continue working with Republicans to secure the legislation’s passage. Cointelegraph reached out to the senators’ offices for further details on the proposed changes but did not receive an immediate response.

Why it matters

The amendments are seen as potentially important to garnering support from Senate Democrats, many of whom have expressed opposition to the CLARITY Act as originally drafted, particularly due to concerns that it might enhance then-President Donald Trump’s influence over cryptocurrency regulation. At the time, the Senate held an effective majority of 52-47 in favor of Republicans, but passage of the bill required a 60-vote threshold, necessitating some Democratic backing. The ongoing debate highlights that ethics provisions remain a key divisive issue as lawmakers work against a looming Senate recess deadline.