Democrats Reject Latest CLARITY Act Draft Over Ethics, Illicit Finance Concerns

The lawmakers objected to giving the DOJ sole enforcement power, arguing state attorney generals should also play a role. A group of Senate Democrats who generally support crypto legislation has said the latest draft of the CLARITY Act still falls short, raising objections to its ethics, consumer protection, illicit finance, conflicts of interest, and market integrity provisions. Their statement adds another hurdle for legislation that already needs bipartisan backing to reach the 60-vote threshold required in the Senate. Democrats Push Back on Latest Draft The updated draft, released by Senate Republicans on July 22, includes an ethics package negotiated between the White House and Republican Senators Cynthia Lummis and Bernie Moreno. The proposal would bar the president, vice president, members of Congress, federal judges and certain other officials, along with their spouses, from issuing or sponsoring digital assets for compensation while in office, with the restriction expiring on January 20, 2029. Covered officials would also have to divest crypto holdings or place them in qualified blind trusts, while the Department of Justice would receive civil enforcement authority, includ...