A group of Democratic senators who usually support proposals related to cryptocurrencies reacted negatively to the latest version of Clarity Act, indicating new obstacles to the bill's approval in the United States Senate.
The updated text was released on July 22 by Republican senators and includes a package of ethical measures negotiated with the White House. Among the points is the prohibition on officials such as the president, vice president, members of Congress, and federal judges from issuing or promoting cryptocurrencies in exchange for payment while they are in office. This restriction would remain in effect until January 20, 2029.
In addition, the text provides that these officials sell their cryptocurrency holdings or place them in blind trusts. The Department of Justice would also gain more power to enforce civil laws, including actions against exchanges that list prohibited tokens.
Even with these changes, senators such as Angela Alsobrooks, Cory Booker, and Mark Warner said that the proposal still has relevant flaws. “The text of the CLARITY Act, proposed by Republicans in its current form, falls short”, says the joint statement. “Essential provisions, including those addressing ethics for elected officials, consumer protection, illicit financing, conflicts of interest, and market integrity, need to be strengthened.”
During a public appearance, Alsobrooks criticized the concentration of power in the Department of Justice, calling the measure “absurd, irresponsible, and completely insane”, while arguing for greater participation by state attorneys general in oversight.
Experts also expressed concern. Attorney Amanda Fischer said on social media that the proposal “changes almost nothing in relation to Trump's already existing cryptocurrency fraud scheme”, highlighting the absence of a requirement for immediate divestment.
Meanwhile, parts of the bill remain unchanged, such as protections for non-custodial software developers and the preservation of the right to self-custody. Additional measures include funding for blockchain investigations and the creation of cybersecurity-focused frameworks.
In the political landscape, the bill still faces difficulties in reaching the 60 votes needed in the Senate. After initial progress, approval estimates have retreated significantly in recent days, reflecting the increased division among lawmakers.