Senate Democrats Object to Revised CLARITY Act, Say Ethics Rules Are Too Weak

Senate Republicans have released a revised version of the CLARITY Act, a digital-asset market structure bill, but Democratic lawmakers are pushing back, saying its ethics provisions do not go far enough to address President Donald Trump’s cryptocurrency business interests.

The Block reported on July 22 that Senate Republicans unveiled a 616-page revised draft of the CLARITY Act combining separate proposals from the Banking Committee and the Agriculture Committee. Democrats say the ethics language in the latest version still does not adequately address conflicts of interest involving public officials’ crypto activities.

Sen. Angela Alsobrooks said the Republican draft is inadequate. She also called for stronger provisions on ethics for elected officials, consumer protection, illicit finance, conflicts of interest and market integrity.

The current draft would bar public officials and their spouses from issuing or sponsoring digital assets, but would not cover other family members. It gives the U.S. Department of Justice authority to enforce the ethics provisions and includes a sunset clause that would end the restrictions in January 2029.

Sen. Ruben Gallego, who backed the bill at the committee stage, has also said he would oppose it on the Senate floor unless the ethics provisions are strengthened. Other prominent Democrats, including Alsobrooks, Cory Booker and Catherine Cortez Masto, also oppose the current draft.

Sen. Elizabeth Warren criticized the bill as something that should be “dead on arrival.” Sen. Chris Murphy has also argued that Democrats should not support the measure unless it explicitly bars the president from engaging in cryptocurrency business activities.

The CLARITY Act needs 60 votes to pass the Senate, making Democratic support essential. If lawmakers fail to resolve their differences over the ethics provisions, the bill could face a difficult path in the chamber.