Talks over the CLARITY Act, a US crypto market-structure bill, have hit a roadblock due to disagreements on ethics provisions. The bill aims to establish a regulatory framework for the digital-asset market by dividing oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Democrats are seeking stronger ethics protections to prevent crypto-related interests from influencing policymaking, while Republicans view some provisions as too far-reaching and have pushed for changes. The White House is also holding separate talks with groups tied to investigations and public safety.
The market has viewed the CLARITY Act as a key measure for reducing regulatory uncertainty in the US crypto sector. However, if negotiations over ethics provisions and safeguards against criminal misuse drag on, the final text and timing of the bill could still change.