CLARITY Act Hits Snag Over Ethics Provisions for Elected Officials

The CLARITY Act's progress has hit a snag, but it's not about crypto regulation. According to David Nage, portfolio manager at Arca, the main hurdle is actually related to ethics provisions tied to elected officials and senior government leaders.

Nage stated that after meeting lawmakers and congressional staff in Washington, he believes they are 'very close', around 80-85% finished, on the core policy framework behind digital asset market structure legislation.

The House passed the CLARITY Act in July 2025, and the Senate Banking Committee advanced its version in May by a 15-9 vote. However, the bill currently sits on the Senate calendar awaiting further action.

Nage highlighted three major items that remain before the legislation can reach the Senate floor: merging the Banking Committee and Agriculture Committee versions of the bill, resolving concerns surrounding decentralized finance developer protections, and finalizing ethics and conflict-of-interest language.