Legislative progress and ethical disputes over Clarity Act
Senate Republicans circulated a new draft of the Crypto Market Structure (Clarity) Act, positioning it as a step toward final passage. The updated text includes a temporary ethics provision barring top federal officials and their spouses from issuing or sponsoring digital assets—but the restriction sunsets in 2029. Senator Cynthia Lummis, a lead negotiator, expressed satisfaction with the release, though she acknowledged that ethics provisions and other elements remain subject to further discussion.
Key Democratic lawmakers said the draft 'falls short' on ethics and other issues. Critics flagged that the ethics ban is temporary and that enforcement rests solely with the Department of Justice, raising questions about the durability and effectiveness of the provision. The debate underscores ongoing tension between Republicans pushing for pro-crypto market structure clarity and Democrats seeking stronger guardrails on government conflicts of interest.
