Dem Senator Slams GOP's CLARITY Ethics Proposal as 'Not a Serious Effort': Report
Senate Democrats are pushing to rewrite the CLARITY Act’s ethics provisions after dismissing the White House-backed proposal unveiled by Republican senators, according to Politico.
Senator Ruben Gallego blasted the latest draft, saying the GOP’s proposal was “not a serious effort” despite months of bipartisan negotiations. The dispute centers on how to prevent President Donald Trump from profiting from digital assets. Democrats insist they cannot support ethics rules enforceable only by the Department of Justice. Negotiations involving Gallego, Senators Cynthia Lummis and Bernie Moreno, and the White House collapsed over whether state attorneys general should also have enforcement authority.
Gallego said he is now working with Senator Thom Tillis and other unnamed Republicans on a counterproposal, insisting, “We are still in this fight.” Lummis defended the proposal, while Tillis said the White House-approved language was “good” but acknowledged further changes may be needed to secure the 60 votes required to advance the legislation. Another round of discussions with the White House is expected to determine if additional revisions would be acceptable to the president.
Senate Majority Leader John Thune said he no longer expects the Senate to pass the CLARITY Act before lawmakers leave for the August recess. The bill’s timeline is now in doubt, and prediction market odds of its passage have declined.
Coinbase CEO Brian Armstrong recently warned that parts of the company’s business could move overseas if the US fails to pass clear crypto legislation, saying regulatory clarity is needed to prevent capital, businesses, and users from shifting offshore.
Amid the standoff, crypto commentator Crypto Sensei proposed a compromise: keep the DOJ as primary enforcer but impose statutory deadlines for investigations, create an independent ethics review body, and allow state attorneys general to intervene only if the DOJ fails to act. He also called for annual disclosures detailing ethics complaints and enforcement actions.