Democrats Reject Latest CLARITY Act Draft Amid Ethics and Consumer Protection Concerns

A bipartisan agreement on crypto market structure remains elusive as seven Democratic senators objected to the latest version of the Digital Asset Market Clarity Act.

The bill, which aims to establish a federal regulatory framework for digital assets and clarify oversight between the SEC and CFTC, has been met with criticism from Democrats who say it falls short in key areas such as ethics for elected officials, consumer protection, illicit finance, conflicts of interest, and market integrity.

Senators Catherine Cortez Masto, Angela Alsobrooks, Cory Booker, Ruben Gallego, John Hickenlooper, Mark Warner, and Raphael Warnock released a joint statement expressing their concerns, saying 'The Republican-proposed text of the CLARITY Act as it currently stands falls short.'

The senators added that they will continue to work in good faith with Republicans to strengthen key provisions, including those addressing ethics for elected officials.