Senate Sends Revised Ethics Proposal on CLARITY Act

Senate negotiators have sent a revised ethics proposal to the White House in a last-ditch effort to secure passage of a major cryptocurrency market structure bill before Congress departs for its August recess. The compromise, crafted by Republican Senator Thom Tillis of North Carolina and Democratic Senator Ruben Gallego of Arizona, would reportedly allow state authorities to enforce restrictions on federal officials' crypto activities, a key change from earlier drafts that granted sole enforcement power to the U.S. Attorney General.

The revision addresses a central dispute that has stalled the Crypto Leadership and Innovation for Tomorrow (CLARITY) Act. Many Democratic lawmakers had questioned whether the Justice Department, which operates under the executive branch, could provide independent oversight, particularly concerning the crypto interests of President Donald Trump and his family. The newly proposed language would give state attorneys general the option to enforce a ban on federal officials issuing or sponsoring digital tokens.

The ethics issue has been a primary obstacle, with Democrats demanding stronger safeguards to address potential conflicts of interest. Their...