Crypto▼ Bearish
CLARITY Act Odds Drop to 39% After Ethics Fails to Win Democrats
Senate GOP added ethics ban to CLARITY Act. Democrats led by Alsobrooks still oppose. Polymarket odds dropped to 39%. The bill's path remains uncertain.
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Senate Republicans released the latest draft of the CLARITY Act. The draft includes an ethics provision that bans covered elected officials from issuing or sponsoring crypto assets.
Covered officials include the president, the vice president, members of Congress, federal judges, and their spouses. They must divest their crypto holdings or place them in a blind trust. The provision sunsets on January 20, 2029, the end of the current presidential term.
Democrats pushed for the ethics provision to limit President Trump's crypto ventures. Trump earned up to $1.4 billion from crypto last year, according to disclosures. He agreed to the provision earlier this week.
The enforcement mechanism remains a point of contention. Democrats want state Attorneys General to have the power to enforce the ethics rules. The current draft gives that role to the Department of Justice. Senator Angela Alsobrooks called the DOJ-only enforcement "wild and unserious and stone-cold crazy." She said she will vote no if the bill reaches the floor in its current form.