A bipartisan agreement on crypto market structure remains elusive after seven Democratic senators rejected the latest version of the Digital Asset Market Clarity Act.
The CLARITY Act aims to establish a federal regulatory framework for digital assets and clarify oversight between the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC).
The revised bill would ban federal officials from issuing or sponsoring digital assets for compensation, with violators facing penalties such as surrendering profits and paying civil fines.
Democrats argue that the proposal requires stronger protections on ethics for elected officials, consumer protection, illicit finance, conflicts of interest, and market integrity.
Critics also question why only federal enforcement is proposed, while others point out that imposing penalties for past conduct would conflict with Article I, Section 9 of the U.S. Constitution.