CLARITY Act momentum slows to a crawl as lawmakers clash over crypto ethics rules
Senate crypto legislation is bogged down over ethics enforcement. Democrats say Republicans and the White House backed away from a prior deal that would let state attorneys general sue the Justice Department if federal officials failed to enforce crypto ethics rules. Republicans say lawmakers later raised constitutional concerns about giving states that power over federal officials. The CLARITY Act already cleared the Banking Committee 15-9, but it needs 60 votes on the Senate floor, so losing even a couple of Democrats could sink it. Sens. Ruben Gallego and Angela Alsobrooks have warned their support depends on meaningful guardrails. Ethics language has steadily weakened across drafts, and Democrats see binding enforcement as essential. Other unresolved fights remain over anti-money-laundering rules, DeFi definitions, and stablecoin yield restrictions, but ethics is the immediate obstacle before the bill can move to a full Senate vote, conference, and House approval.
