Ethics Clash Saps Momentum Behind US Crypto Market Structure Bill

Disputes over ethics rules for senior public officials are weakening momentum behind US legislation to establish a cryptocurrency market structure framework, CryptoSlate reported.

On June 9, Republicans offered Democrats a watered-down version of the Clarity Act's ethics provisions, according to the report published June 10. Talks between the two parties have run into difficulty over the bill's crypto-related ethics rules for high-ranking public officials.

A central sticking point is the authority of state attorneys general. The contested provision would let state attorneys general sue the Justice Department if it fails to properly enforce certain cryptocurrency ethics requirements.

Republicans have discussed removing the provision. They contend that allowing state officials to sue federal employees or members of Congress could violate the Constitution.

The Clarity Act needs at least 60 votes to pass the full Senate. Even if all Republican senators support it, the measure would still require at least seven Democratic votes.

Other disagreements remain. Democrats want stronger anti-money laundering provisions in the bill. Senator Elizabeth Warren recently introduced an amendment to expand the Treasury Department's authority to sanction decentralized finance, or DeFi, services, but it was voted down in the Senate Banking Committee after all 13 Republican members opposed it.

There are procedural hurdles as well. After clearing the Senate Banking Committee, the Clarity Act must be combined with legislation from the Agriculture Committee. Even if it passes the full Senate, it would still have to be reconciled with a separate cryptocurrency bill that passed the House in July 2025.

CryptoSlate said the issue of interest payments on stablecoins has slipped behind other priorities. If lawmakers want to keep to their schedule before Congress begins its August recess, they first need to resolve differences over the ethics provisions.