Seven Democratic Senators Oppose Clarity Act Amendment, Saying Ethics Rules Fall Short

Seven Democratic senators have come out against the latest amendment to the Clarity Act.

BeInCrypto reported on July 22 that seven Democratic senators, including Angela Alsobrooks, Cory Booker, Ruben Gallego and John Hickenlooper, said in a joint statement that they could not support the current version of the bill.

Earlier that day, Republicans released a 616-page amendment to the Clarity Act. It includes a new ethics provision that would bar senior government officials, including the president and vice president, from issuing or endorsing cryptocurrencies for compensation while in office. The provision, however, would expire on Jan. 20, 2029.

The senators said the Republican amendment does not go far enough. They called for stronger provisions covering ethics for elected officials, consumer protection, conflicts of interest and market integrity. The group also said it had negotiated in good faith with Republican colleagues over the past year and would continue discussions to complete the bill.

Alsobrooks separately objected to giving the Justice Department sole authority to enforce the ethics provision. If the department does not enforce the law, state attorneys general should be able to act directly, she said. Alsobrooks has said she would vote against the bill on the Senate floor unless the ethics provision is strengthened.

The banking industry also criticized the amendment. Six financial industry groups, including the American Bankers Association, said in a joint statement on July 22 that the revised Clarity Act would also put community lending that supports U.S. economic activity at risk.