The CLARITY Act, a bipartisan bill aimed at regulating the cryptocurrency industry, has hit a roadblock due to disagreements over ethics rules. A key enforcement mechanism, which would allow state attorneys general to sue the Justice Department if federal officials fail to enforce certain crypto ethics requirements, is currently in dispute.
Senate Republicans and Democrats have differing views on this provision, with some arguing that it could lead to constitutional concerns and others seeing it as a necessary measure to ensure compliance. The bill's passage is now uncertain, with analysts predicting a 60% chance of it passing in 2026.