CLARITY Act Hits Snag Ahead of Senate Vote as Democrats Demand Ethics Accord

The CLARITY Act, a key U.S. cryptocurrency regulation bill, is running into last-minute resistance ahead of a Senate floor vote. Markets are now watching for a possible delay in the bill’s passage.

CoinDesk reported on June 5 that the outlook for a Senate floor vote has become uncertain as Democrats and Republicans remain divided over ethics provisions and safeguards against illicit finance.

Senator Angela Alsobrooks, a Maryland Democrat, said she would not support the bill on the Senate floor until lawmakers reach a full agreement on ethics rules and other unresolved issues.

The ethics provisions in question are understood to include potential conflicts of interest related to U.S. President Donald Trump’s crypto businesses.

In recent weeks, Democratic lawmakers and some law enforcement agencies have raised concerns that the CLARITY Act could weaken anti-money laundering, or AML, rules and make it harder to crack down on financial crime.

Republicans and the crypto industry, by contrast, argue that the bill would reduce regulatory uncertainty in digital-asset markets and bolster the industry’s competitiveness in the U.S.

The measure had been widely expected to pass this summer. But political disagreements are now raising the prospect of delays or renewed negotiations over revisions to the bill.