Particle.news
Download on the App Store

Senate Negotiators Race to Resolve Ethics Language on CLARITY Act

If lawmakers cannot agree on conflict-of-interest rules the bill may miss a narrow pre-recess window that would determine whether Congress sets a new U.S. framework for digital assets this year.

Overview

  • Negotiators say the CLARITY Act is in final-stage talks and that ethics and conflict-of-interest provisions are the principal sticking point holding up a Senate floor vote.
  • The bill would split oversight between the SEC for investment-contract assets and the CFTC for sufficiently decentralized network tokens and would create safe harbors for noncustodial DeFi developers and node operators.
  • Supporters report the legislation includes new enforcement and anti-money‑laundering tools, a reported $150 million for crypto crime work, and temporary transaction-freeze authority for suspicious activity.
  • In mid-June negotiators held last-minute meetings to reconcile competing Senate drafts and Agriculture and Banking committee text as leaders race to assemble roughly 60 votes before the August recess.
  • If the pre-recess window closes, passage could slip into the next congressional term and prolong legal uncertainty for exchanges, token issuers, DeFi developers, and investors while agencies prepare rulemaking.