Democratic Senators Oppose Revised Clarity Act Amid Concerns Over Ethics Provisions

Seven Democratic senators have expressed opposition to an amendment to the Clarity Act, which aims to regulate digital assets. The senators, including Cory Booker and Ruben Gallego, stated that the current version of the bill does not go far enough in addressing ethics for elected officials, consumer protection, conflicts of interest, and market integrity.

The Republican-sponsored amendment includes a new provision that would bar senior government officials from issuing or endorsing cryptocurrencies for compensation while in office. However, this provision would expire on January 20, 2029.

Angela Alsobrooks, one of the senators opposing the bill, argued that giving the Justice Department sole authority to enforce the ethics provision is insufficient. She suggested that state attorneys general should have the power to act directly if the department fails to do so.