US Senators Offer White House Revised CLARITY Act Ethics Deal as Recess Nears

A bipartisan pair of US senators has sent the Trump administration revised ethics standards for the CLARITY Act as lawmakers race to salvage the digital asset framework bill before the recess scheduled to start August 7.

Republican Senator Thom Tillis and Democratic Senator Ruben Gallego submitted a counteroffer to the White House that would allow state attorneys general to enforce a ban on federal officials issuing or sponsoring digital assets. Under the Senate’s current draft, enforcement would rest with the US Attorney General, while state authorities and private parties would be barred from taking action.

This structure has become a major obstacle for opposition figures who argue that placing sole responsibility with the Trump administration’s Department of Justice could make the ethics restrictions ineffective given the president’s substantial financial ties to cryptocurrency. Gallego and six Democratic colleagues have also called for stronger provisions covering ethics, consumer protection, illicit finance, conflicts of interest, and market integrity.

The compromise could help negotiators secure the Democratic votes needed to overcome the Senate’s 60-vote threshold. However, White House approval and bipartisan support remain uncertain, with time running short before lawmakers leave Washington for a month-long recess.

The CLARITY Act would establish a federal framework for digital asset markets and clarify the responsibilities of US financial regulators. It would also treat digital commodity exchanges, brokers, and dealers as financial institutions under the Bank Secrecy Act, subjecting them to AML requirements.

A delay until September could further reduce the bill’s prospects ahead of November’s midterm elections.