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Clarity Act at risk after Democrats demand new ethics rules

2 min read
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Clarity Act at risk after Democrats demand new ethics rules
Source: Edgar Arroyo/Pexels — Clarity Act at risk after Democrats demand new ethics rules
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The progress of the Clarity Act, a bill that seeks to establish a regulatory framework for the cryptocurrency market in the United States, faces a new political obstacle. Three Democratic senators are threatening to block the proposal’s progress unless the text includes stricter ethics rules to prevent public officials from obtaining personal financial gains from digital assets.

The pressure comes at a decisive moment for the legislation, considered one of the main initiatives aimed at regulating cryptocurrencies in the U.S. Congress. The impasse increases uncertainties over the voting timetable, since the Senate has a limited window to complete its analysis of the bill before the August congressional recess.

According to the lawmakers, the inclusion of an ethics clause is essential to avoid conflicts of interest involving holders of public office. The proposal defended by the Democrats seeks to restrict cryptocurrency-related investments and financial benefits by federal government officials and members of Congress while they are in office.

The debate gained momentum after the current president of the United States, Donald Trump, disclosed that he received more than US$ 1,4 bilhão in revenue related to the cryptocurrency sector last year. The disclosure intensified demands for transparency mechanisms and limits on the financial involvement of officials with a market that may also be impacted by the very legislation under discussion.

Although the Clarity Act has support from lawmakers from both parties and the cryptocurrency industry, the dispute over the ethics clause has come to be seen as the main challenge to its approval. Without an agreement between Republicans and Democrats, the bill may face further delays or even have its vote postponed.

Behind the scenes, negotiators continue trying to build a text that preserves bipartisan support. The expectation is that any changes to the ethics section may unlock the negotiations without compromising the other points of the proposal, which define regulatory powers and establish rules for cryptocurrency companies and issuers.

Meanwhile, the market is closely following developments in Congress. The decision on the ethics clause is considered decisive for the future of the Clarity Act, which remains one of the most important proposals for the cryptocurrency sector in the United States in 2026.

In a report published earlier, it was informed that the White House is preparing a high-level meeting with senators to try to resolve precisely the impasse involving the ethics section of the Clarity Act. The new position of three Democratic senators reinforces the importance of these negotiations and shows that this chapter continues to be the main point of tension before a possible vote in the Senate.

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