Key Democratic lawmaker says the crypto "Clarity Act" falls short on ethics and other issues

Source: Global Market Report

A group of U.S. Senate Democratic lawmakers said on Wednesday that the latest draft of the crypto market structure bill "falls short in terms of ethics and other provisions."

Senators Angela Alsobrooks, Cory Booker, Catherine Cortez Masto, Ruben Gallego, John Hickenlooper, Mark Warner, and Raphael Warnock—a group of key negotiators who could push the bill forward—said in a joint statement shared with CoinDesk that they will continue to work with their Republican colleagues on advancing the Clarity for Digital Asset Markets Act (Clarity Act), but the legislation requires further improvement on several outstanding issues, including how to address illicit financial activity and consumer protections.

In the committee, only Alsobrooks and Gallego voted in favor of the Clarity Act, while several other senators in the statement had previously expressed their support for the bill.

The statement reads: "The current text of the Republican-backed CLARITY Act still falls short." "Key provisions regarding ethics for elected officials, consumer protection, illicit finance, conflicts of interest, and market integrity must be strengthened."

Senate Republicans released a new draft of the Clarity Act earlier Wednesday, which includes an ethics provision agreed to by both the White House and President Donald Trump.

Senator Bernie Moreno, one of the bill's main Republican supporters, posted on social media earlier Wednesday that this is “the strongest ethics language in American history.” “Don't listen to Washington Democrats’ lies,” the post said.

Ethics provisions have been an outstanding issue for over a year, tracing back to the Senate's work on last year's US Stablecoins Guidance and National Innovation (GENIUS) Act for stablecoins. However, the issue has regained attention in recent weeks after Trump recently disclosed his latest financial report, showing more than $1.4 billion in revenues from crypto-related businesses in 2025.

It remains unclear when the bill will be brought to the Senate floor for consideration, though the office of Senate Republican Leader John Thune said he still plans to advance the agenda in the coming days.

The Senate will enter its summer recess after August 7, and there are other matters that lawmakers must address. The bill requires 60 votes to move forward, meaning up to 10 Democratic votes may be needed. “Over the past year, we have worked with our Republican colleagues in good faith and will continue striving to ensure the passage of this bill,” Democratic lawmakers stated.