The White House has reportedly agreed to an ethics package for the CLARITY Act, removing a significant obstacle to US cryptocurrency market structure legislation. The agreement was circulated on July 20 to selected Senate Republicans, but details of the provision remain unclear.
The CLARITY Act needs 60 votes in the Senate to pass, and resolving the ethics dispute is crucial for its progress. Senate Democrats had warned that they would not support the bill without enforceable safeguards addressing conflicts of interest involving elected officials and the crypto industry.
The bill aims to divide oversight of digital assets between the Securities and Exchange Commission and the Commodity Futures Trading Commission. The CFTC would receive primary authority over spot markets for qualifying digital commodities, while the SEC would retain jurisdiction over tokens and transactions treated as securities.