US senators sent revised ethics rules for CLARITY Act
Two US senators sent revised ethics rules to the White House as part of talks on the CLARITY Act, a crypto market structure bill racing against a Senate recess. The counteroffer would let state authorities enforce a ban on federal officials issuing or sponsoring tokens, rather than the US Attorney General, according to a Punchbowl report.
Key Takeaways
- Senators Thom Tillis and Ruben Gallego reportedly sent a counteroffer with revised ethics guidelines to the White House for the Digital Asset Market Clarity (CLARITY) Act.
- The rewrite would shift enforcement of a ban on federal officials issuing or sponsoring tokens to state authorities instead of the US Attorney General.
- Ethics remains a dividing issue as the window to pass comprehensive crypto market structure legislation before a month-long Senate recess closes.
- Republicans hold an effective 52-47 Senate majority with Mitch McConnell absent, so Democratic votes are still needed to clear the 60-vote threshold.
What did senators send to the White House?
According to a Thursday Punchbowl report cited by Cointelegraph, Senators Thom Tillis and Ruben Gallego — from opposite sides of the aisle — submitted revised ethics guidelines tied to negotiations over a cryptocurrency market structure bill in Congress.
The proposal is framed as a counteroffer to the Trump administration and focuses on ethics provisions inside the Digital Asset Market Clarity (CLARITY) Act. Cointelegraph said it reached out to both senators’ teams for clarification and did not receive an immediate response.
For readers tracking US crypto policy, this development sits squarely in our Fintech & Crypto Alerts coverage of market structure and congressional timelines.
Why do the revised ethics rules matter?
Ethics has become a dividing issue for many lawmakers as Congress weighs a comprehensive crypto market structure bill. The reported changes would address concerns from many lawmakers about the first draft by allowing state authorities to enforce a ban on federal officials issuing or sponsoring tokens, rather than leaving that role with the US Attorney General.
Senator Gallego, a Democrat, previously said provisions around ethics, consumer protection, illicit finance, conflicts of interest, and market integrity “must be strengthened,” and that he would keep working with Republicans to get the bill “over the finish line.”
Supporters of stronger guardrails argue the revisions could help bring in Senate Democrats. Many Democrats have publicly said they will not vote for the CLARITY Act if it protects President Donald Trump’s dominance over an industry he would have more control to regulate.
Can the CLARITY Act still pass before recess?
The legislative clock is tight. The window to pass comprehensive crypto market structure legislation before the Senate breaks for a month-long recess is closing, with ethics still unresolved for many members.
Republicans currently have an effective 52-47 majority in the Senate, with Senator Mitch McConnell absent due to medical reasons. That means the chamber still needs Democratic support to meet the 60-vote threshold for the bill to pass.
Whether the Tillis-Gallego ethics counteroffer unlocks those votes remains the central open question for markets watching Washington’s next move on crypto market structure.