U.S. Congress: Clarity Act Momentum Stalls Over Ethics Language
The Crypto Clarity Act has secured backing from major financial institutions, law enforcement, and crypto industry groups, but Senate passage before August recess is now unlikely. Fidelity, the $7 trillion investment manager, endorsed the market-structure bill, joining the National Fraternal Order of Police and multiple crypto advocacy organizations in public support.
Senate Majority Leader John Thune signaled the bill will not clear the chamber before the scheduled August recess, citing Democratic objections to GOP-inserted ethics language. Democrats argue the ethics provisions—reportedly tied to restrictions on President Trump's personal crypto dealings—do not sufficiently address insider trading concerns. Senator Elizabeth Warren criticized a separate House bill on insider trading, stating it fails to prevent lawmakers from trading stocks based on non-public information.
The White House has urged Senate Democrats to accept negotiated limits on Trump's crypto activities as a legislative victory, suggesting the Clarity Act's current restrictions represent a compromise position. The competing priorities of market structure reform, ethics oversight, and shrinking floor time have compressed the legislative window for passage.
