Key facts
- Senate Republicans released a draft of the CLARITY Act with ethics provisions.
- The proposed ethics rules would bar federal officials, including the President, from digital asset issuance or sponsorship.
- Senator Ruben Gallego called the GOP's draft "piece of shit" and "not a serious effort."
- Gallego is working on a counterproposal with Republican Senator Thom Tillis.
- Democrats object to the Department of Justice being the sole enforcer of the ethics rules.
- Senate Majority Leader John Thune doubts the bill will pass before the August recess.
Senate Democrats have rejected the ethics provisions in the latest draft of the CLARITY Act, a crypto market-structure bill, with Senator Ruben Gallego calling the Republican proposal "piece of shit" and "not a serious effort." Gallego stated he is working on a counteroffer with Republican Senator Thom Tillis and other Republicans. The core dispute lies in enforcement mechanisms, as Democrats are unwilling to accept the Department of Justice as the sole enforcer, citing distrust of the Trump administration. Earlier talks had stalled over the role of state attorneys general. Republican Senator Bernie Moreno defended the draft, asserting it contains "the most powerful ethics rules ever imposed on the office of the presidency." Senate Majority Leader John Thune expressed doubt that the bill, along with a separate college-sports bill, could pass before the August recess. The White House, however, through adviser Patrick Witt, conveyed more optimism about the timeline. The CLARITY Act's ethics rules, which would sunset in 2029, aim to bar federal officials from issuing or sponsoring digital assets, a provision influenced by President Trump's own crypto ventures.